Problem 17: Income StatementMARK Inc. is engaged in the business of manufacturing basket balls. Thecompany employs actual costing system. The company uses a single accountfor direct and indirect materials. The company provided the following data forthe year ended December 31, 2016:Gross salesSales returnsGross purchasesPurchase returns, allowance and discountFreight inTotal costs of factory laborDepreciation of factory assetsExpired insurance on factory assetsUtilities expense on factoryTotal administrative expensesTotal marketing expenses9,500,000500,0001,000,000200,000400,0001,000,000300,000100,000500,0002,000,0003,000,000Inventories are as follows:January 1100,000December 31Raw materialsWork in processFinished goods300,000200,000600,000500,000The following additional data are provided:1. The net profit ratio of the company before income tax for the year endedDecember 31, 2016 was 10% of net sales.2. The direct labor cost for the year was four times the cost of indirect labor.3. The cost of indirect materials used was P100,000.Required: Compute the followingPrime Costd. Cost of goods solde. Work in process Jan. 1, 2016a.b. Conversion costС.Cost of goods manufactured61

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Description: Problem 17: Income StatementMARK Inc. is engaged in the business of manufacturing basket balls. Thecompany employs actual costing system. The company uses a single accountfor direct and indirect materials. The company provided the following data for

Cost accounting means the recording of different cost in different account and to find out the cost…

Answered: Required: Compute the following Prime…

Business

Accounting

Required: Compute the following Prime Cost b. Conversion cost a. с. Cost of goods manufactured 6.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject:- Accounting