Reference no: EM132923677

Question - Dartmouth Company reported the following inventory balances as of October 31, 2015:

Raw materials P80,000

Work in process 110,000

Finished goods 190,000

The following transactions occurred during the month of November:

1. Purchased P 25,000 of raw materials on account.

2. Issued P 18,000 of raw materials to production, of which P 15,000 were direct to the product.

3. Factory payroll of P 34,000 was accrued and distributed as follows: P 30,000 for direct labor and P 4,000 for supervisors (ignore payroll taxes and deductions).

4. Factory utility costs of P 8,000 were accrued.

5. Prepaid insurance of P1,000 on factory equipment expired in November.

6. Straight-line depreciation on factory equipment for the month was P 10,000.

7. Selling and administrative expenses were P 40,000 (P30,000 was paid in cash and P 10,000 was accrued.)

8. Factory overhead was transferred to work in process inventory.

9. Goods manufactured were transferred to finished goods inventory. Ending inventories were: work in process, P 60,000 and finished goods, P 175,000.

10. Sales of P 217,600 was made on account.

Required -

a. Make journal entries to record the above transactions (perpetual and periodic)

b. Make a statement of the cost of goods manufactured?

c. Make an income statement.