• The following are selected transactions of Beauty Products for the month of March, 2012:

1. Raw materials purchased on account, P80,000

Factory supplies purchased for cash, P3,000

2. Freight paid in cash for the materials purchased, P1,500.

3. Factory payroll for the month was as follows:

Paid to workers net of following deductions 72,400

Withholding taxes 3,200

SSS Premiums 2,500

Phil Health Premiums 1,300

HDMF Premiums 600

Direct Labor was P50,000, Indirect Labor P10,000, Sales Salaries P10,000, and Office

Salaries P10,000.

4. Employer's share for the premium (allocated based on payroll)

Phil Health P1,300

Combined EC and Maternity 750

SSS 3,250

HDMF 600

5. Monthly depreciation charges for the building, P4,000 and for factory machinery, P3,000.

6. Power, P3,000 and machine maintenance, P1,600.

7. A total of 1,000 goods were finished and out of which 800 units were sold at a 100% mark up

on product cost.

8. Inventories at the end of the month were:

Finished Goods ?

Work in Process 15,000

Raw Materials 14,000

9. Allocation basis of power and depreciation is 50% for the factory and 25% each for

distribution and administrative.

Required:

a) Cost of goods manufactured

b) Number of units manufactured and the cost of manufacturing one unit.

c) Cost of the finished goods, applying the unit cost computed in b)

d) Cost of goods sold

e) Net income for the quarter

Answer rating: 100% (QA)

a Cost of goods manufactured Direct Materials Raw materials purchased on account P80000 Add Freight paid in cash for the materials purchased P1500 Total Direct Materials P81500 Direct Labor P50000 Ind... View the full answer