The following information relates to EAZ Company for the year ended December 31, 2018: Raw materials P200,000 Direct Labor 100,000 5,000 47,000 18,000 Indirect Materials Indirect Labor Factory utilities Factory rent Depreciation - Factory Equipment 36,000 24,000 960,000 120,000 240,000 Sales Selling Expenses Administrative expenses Income tax rate 30% January 1 P20,000 18,000 December 31 Raw Materials Inventory Work In Process Inventory Finished Goods Inventory P16,000 15,000 21,000 24,000 Required: 1. Calculate the Raw Materials Used 2. Prepare a schedule of goods manufactured. 3. Construct an income statement for the year ended December 31, 2018.

The following information relates to EAZ Company for the year ended December 31, 2018: Raw materials P200,000 Direct Labor 100,000 5,000 47,000 18,000 Indirect Materials Indirect Labor Factory utilities Factory rent Depreciation - Factory Equipment 36,000 24,000 960,000 120,000 240,000 Sales Selling Expenses Administrative expenses Income tax rate 30% January 1 P20,000 18,000 December 31 Raw Materials Inventory Work In Process Inventory Finished Goods Inventory P16,000 15,000 21,000 24,000 Required: 1. Calculate the Raw Materials Used 2. Prepare a schedule of goods manufactured. 3. Construct an income statement for the year ended December 31, 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

The following information relates to EAZ Company for the year ended December 31, 2018:
Raw materials
P200,000
100,000
5,000
Direct Labor
Indirect Materials
Indirect Labor
Factory utilities
47,000
18,000
Factory rent
36,000
Depreciation - Factory Equipment
24,000
960,000
120,000
240,000
Sales
Selling Expenses
Administrative expenses
Income tax rate
30%
December 31
Raw Materials Inventory
Work In Process Inventory
Finished Goods Inventory
January 1
P20,000
18,000
P16,000
15,000
21,000
24,000
Required:
1. Calculate the Raw Materials Used
2. Prepare a schedule of goods manufactured.
3. Construct an income statement for the year ended December 31, 2018.

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