Problem 17: Income Statement MARK Inc. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2016: Gross sales Sales returns Gross purchases Purchase returns, allowance and discount Freight in Total costs of factory labor Depreciation of factory assets Expired insurance on factory assets Utilities expense on factory Total administrative expenses Total marketing expenses Inventories are as follows: January 1 December 31 Raw materials 100,000 300,000 Work in process ? 200,000 Finished goods 500,000 600,000 9,500,000 500,000 1,000,000 200,000 400,000 1,000,000 300,000 100,000 500,000 2,000,000 3,000,000 The following additional data are provided: 1. The net profit ratio of the company before, income tax for the year ended December 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 following a. Prime Cost b. Conversion cost c. Cost of goods manufactured d. Cost of goods sold e. Work in process Jan. 1, 2016 Problem 23: COST OF GOODS SOLD (ACTUAL COSTING) Danica Corp. provided the following inventory balances and cost data for the month of June. Direct Materials Work in Process Finished Goods Production data for the month of June follows: Junel June 30 30,000 40,000 15,000 20,000 65,000 50,000 Cost of goods manufactured 515,000 Factory overhead applied 150,000 Direct materials used 190,900 144,000 Actual factory overhead Required: Compute the cost of goods sold under actual costing Scanned with CamScanner