Reference no: EM132580584

INCOME STATEMENT OF A MANUFACTURING COMPANY

The beginning balances of Luke Steel Manufacturing Company is presented as follows:

                              Beginning Balances                 Ending Balances

Raw Materials         P 400,000                                 P 350,000

Work In Process           500,000                                    420,000

Finished Goods               700,000                                    600,000

Transactions that transpired during the month were:

1. Raw materials amounting to P40,000 were purchased in cash.

2. Purchase Raw Materials costing P100,000 on account

3. Rental during the period: 50% Office; 50% Factory, amount, P150.000

4. Depreciation Expense: P15,000 Office Equipment; P25,000 Machineries and Equipment

5. Utilities incurred P25,000

6. Paid Office Salaries, P10,000

7. Indirect Materials used P50,000

8. Factory labor used consisted of: Direct Labor P 270,000 Indirect Labor 100,000

9. Finished goods sold amounts to P 1,520,000

10. Office supplies expenses, P2,500

Question A. Compute for the following:

1. Raw Materials used

2. Manufacturing cost

3. Cost of Goods Manufactured

4. Cost of Goods Sold

5. Gross Profit

Question B. Prepare the Income Statement of Luke Steel Manufacturing Company for the first quarter of 2020