F. Khyle Lorenz Manufacturing Company presented the following data: a. Cost of goods manufactured and cost...

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F. Khyle Lorenz Manufacturing Company presented the following data: a. Cost of goods manufactured and cost of goods sold were P2,250,000 and P1,800,000, respectively. b. Purchase of raw materials amounted to twice as much as the net income before taxes. c. Gross margin based on sales 40%. There were no purchase returns but sales returns amounted to P60,000. d. Inventory evaluations were as follows: Raw materials at the end of the period is one-third as at the start. Work in process at the end of the period is 250% of the sales returns. There is no work in process inventory at the beginning of the period. Finished goods at the end of the period is four times as large as at start. e. Breakdown of costs incurred in manufacturing were as follows: Raw materials Direct labor 50% 30% Factory overhead 20% f. Selling expense amounted to four times as much as the administrative expenses. g. Net income after taxes amounted to P336,000. h. Marginal income tax rate is 30%. Required: With supporting schedule of an income statement determine the following: 1. Total sales before the returns 2. Total goods available for sale 3. Prime cost 4. Conversion cost 5. Raw materials end 6. Finished goods end 7. Total selling expenses. F. Khyle Lorenz Manufacturing Company presented the following data: a. Cost of goods manufactured and cost of goods sold were P2,250,000 and P1,800,000, respectively. b. Purchase of raw materials amounted to twice as much as the net income before taxes. c. Gross margin based on sales 40%. There were no purchase returns but sales returns amounted to P60,000. d. Inventory evaluations were as follows: Raw materials at the end of the period is one-third as at the start. Work in process at the end of the period is 250% of the sales returns. There is no work in process inventory at the beginning of the period. Finished goods at the end of the period is four times as large as at start. e. Breakdown of costs incurred in manufacturing were as follows: Raw materials Direct labor 50% 30% Factory overhead 20% f. Selling expense amounted to four times as much as the administrative expenses. g. Net income after taxes amounted to P336,000. h. Marginal income tax rate is 30%. Required: With supporting schedule of an income statement determine the following: 1. Total sales before the returns 2. Total goods available for sale 3. Prime cost 4. Conversion cost 5. Raw materials end 6. Finished goods end 7. Total selling expenses.

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