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    A. Masay Company Statement of Cost of Goods Manufactured Year Ended XX 2020

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    Jay Ann Dome
    The document contains 3 statements from Masay Company for the year ended 2020: 1) A statement of cost of goods manufactured showing the costs of raw materials, direct labor, and factory overhead totaling $5,060,000. 2) An income statement using the cost of goods sold method showing net income of $500,000. 3) An alternative income statement using the nature of expense method also showing net income of $500,000.

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    A. Masay Company Statement of Cost of Goods Manufactured Year Ended XX 2020

    Uploaded by

    Jay Ann Dome
    2K views6 pages
    The document contains 3 statements from Masay Company for the year ended 2020: 1) A statement of cost of goods manufactured showing the costs of raw materials, direct labor, and factory overhead totaling $5,060,000. 2) An income statement using the cost of goods sold method showing net income of $500,000. 3) An alternative income statement using the nature of expense method also showing net income of $500,000.

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    The document contains 3 statements from Masay Company for the year ended 2020: 1) A statement of cost of goods manufactured showing the costs of raw materials, direct labor, and factory overhead totaling $5,060,000. 2) An income statement using the cost of goods sold method showing net income of $500,000. 3) An alternative income statement using the nature of expense method also showing net income of $500,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views6 pages

    A. Masay Company Statement of Cost of Goods Manufactured Year Ended XX 2020

    Uploaded by

    Jay Ann Dome
    The document contains 3 statements from Masay Company for the year ended 2020: 1) A statement of cost of goods manufactured showing the costs of raw materials, direct labor, and factory overhead totaling $5,060,000. 2) An income statement using the cost of goods sold method showing net income of $500,000. 3) An alternative income statement using the nature of expense method also showing net income of $500,000.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Dome, Jay Ann B 02-11-2021

    BSA – 21 Dr. Robert Y. Co


    Problem 4-1

    a. Masay Company
    Statement of Cost of Goods Manufactured
    Year Ended XX 2020

    Raw materials – January 1 P 200,000


    Purchases 3,000,000
    Raw materials available for use 3,200,000
    Less: Raw materials – December 31 280,000
    Raw materials used 2,920,000
    Direct labor 950,000
    Factory overhead:
    Indirect labor 250,000
    Superintendence 210,000
    Light, heat and power 320,000
    Rent – factory building 120,000
    Repair and maintenance – machinery 50,000
    Factory supplies used 110,000
    Depreciation – machinery 60,000 1,120,000
    Total manufacturing cost 4,990,000
    Goods in process – January 1 240,000
    Total Cost of goods in process 5,230,000
    Less: Goods in process – December 31 (170,000)
    Cost of goods manufactured 5,060,000
    Cost of Goods Sold Method

    b. Masay Company

    Income Statement

    Year ended XX 2020

    Note

    Net sales revenue (1) P 7,450,000


    Cost of goods sold (2) (5,120,000)
    Gross income 2,330,000
    Other income (3) 210,000
    Total income 2,540,000
    Expenses:
    Distribution Costs (4) 830,000
    Administrative Costs (5) 590,000
    Other losses (6) 300,000 1,720,000
    Income before tax 820,000
    Income tax expense (320,000)
    Net income P 500,000

    Note 1 – Net sales revenue


    Sales P 7,500,000
    Sales returns and allowances (50,000)
    Net sales revenue P 7,450,000

    Note 2 – Cost of goods sold


    Cost of goods manufactured P 5,060,000
    Finished Goods, beg. 360,000
    Goods available for sale 5,420,000
    Finished goods, end (300,000)
    Cost of goods sold P 5, 120,000
    Note 3 – Other income
    Interest income P 10,000
    Gain on sale of equipment 100,000
    Gain from expropriation of Assets 100,000
    Other Income P 210,000

    Note 4 – Distribution Costs


    Sales salaries P 400,000
    Advertising 160,000
    Depreciation - store equipment 70,000
    Delivery expenses 200,000
    Distribution Costs P 830,000

    Note 5 – Administrative Costs


    Office salaries P 150,000
    Depreciation – office equipment 40,000
    Accounting and legal fees 150,000
    Office expenses 250,000
    Administrative Costs P 590,000

    Note 6 – Other Losses


    Earthquake Loss P 300,000
    Other losses P 300,000
    Nature of expense method

    c. Masay Company

    Income Statement

    Year Ended XX 2020

    Notes
    Net Sales (1) P 7,450,000
    Other Income (2) 210,000
    Total Income 7,660,000

    Expenses:
    Decrease in Inventory (3) P 130,000
    Raw Materials Used (4) 2,920,000
    Salaries (5) 550,000
    Depreciation (6) 110,000
    Advertising 160,000
    Office Expenses 250,000
    Delivery Expenses 200,000
    Product Cost (7) 2,070,000
    Accounting and Legal fees 150,000
    Other Losses (8) 300,000 6,840,000
    Income before Tax 820,000
    Income Tax (320,000)
    Net Income P 500,000
    Note 1 – Net Sales Revenue
    Sales P 7,500,000
    Sales Return and Allowance 50,000
    Net Sales Revenue P 7,450,000

    Net 2 – Other Income


    Interest Income P 10,000
    Gain on sale of equipment 100,000
    Gain from expropriation of Assets 100,000
    Other Income P 210,000

    Note 3 – Decrease in finished goods and goods in process


    Decrease Beg. End.
    Finished Goods 60,000 P 360,000 P 300,000
    Good in Process 70,000 240,000 170,000
    Total Decrease 130,000 P 600,000 P 470,000

    Note 4 – Raw materials used


    Raw Materials, beg. P 200,000
    Purchases 3,000,000
    Raw Materials, end. 280,000
    Raw Materials Used P 2,920,000

    Note 5 – Salaries
    Sales salaries P 400,000
    Office salaries 150,000
    Salaries P 550,000

    Note 6 – Depreciation
    Depreciation – store equipment P 70,000
    Depreciation – office equipment 40,000
    Depreciation P 110,000
    Note 7 – Product Costs
    Direct Labor P 950,000
    Factory Overhead:
    Indirect labor 250,000
    Superintendence 210,000
    Light, heat and power 320,000
    Rent – factory building 120,000
    Repair and maintenance – machinery 50,000
    Factory supplies used 110,000
    Depreciation – machinery 60,000
    Product Costs P 1,120,000

    Note 8 – Other Losses


    Earthquake loss P 300,000
    Other Losses P 300,000

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