Problem 1 Purchase price of raw materials Rebates on raw material purchases P100,000 2,000 Import taxes 17,000 Local taxes paid in relation to the purchase 1,500 Freight-in 12% VAT on the purchase price 5,000 12,000 Interest expense related to the purchase 3,200 Utilities used on factories 20,000 Wages of factory personnel 50,000 Salaries of accountants 12,000 Depreciation of factory equipment 22,000 Depreciation of the head office Normal losses during production 32,000 1,000 Abnormal losses during production 2,800 General and administrative expenses 20,000 Storage costs of work-in-process inventories Storage costs of finished goods inventories Shipping costs on sale of finished goods 7,000 4,000 3,000
Problem 1 Purchase price of raw materials Rebates on raw material purchases P100,000 2,000 Import taxes 17,000 Local taxes paid in relation to the purchase 1,500 Freight-in 12% VAT on the purchase price 5,000 12,000 Interest expense related to the purchase 3,200 Utilities used on factories 20,000 Wages of factory personnel 50,000 Salaries of accountants 12,000 Depreciation of factory equipment 22,000 Depreciation of the head office Normal losses during production 32,000 1,000 Abnormal losses during production 2,800 General and administrative expenses 20,000 Storage costs of work-in-process inventories Storage costs of finished goods inventories Shipping costs on sale of finished goods 7,000 4,000 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How much should be taken to expense?
Transcribed Image Text:Problem 1
Purchase price of raw materials
P100,000
Rebates on raw material purchases
2,000
Import taxes
Local taxes paid in relation to the purchase
17,000
1,500
Freight-in
12% VAT on the purchase price
5,000
12,000
Interest expense related to the purchase
3,200
Utilities used on factories
20,000
Wages of factory personnel
50,000
Salaries of accountants
12,000
Depreciation of factory equipment
Depreciation of the head office
Normal losses during production
Abnormal losses during production
General and administrative expenses
22,000
32,000
1,000
2,800
20,000
Storage costs of work-in-process inventories
Storage costs of finished goods inventories
Shipping costs on sale of finished goods
7,000
4.000
3.000
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