Reference no: EM132778119

The Dunhill Metal Industries, Inc. was organized on January 01, 2020. The following data are made available to you:

1. Material purchases during the period amounted to P282,500, P2,500 of which were returned to the creditors.

2. 10% of the net purchases remained unused as of December 31.

3. 80% of the net purchases were paid during the period.

4. Direct labor cost during the period amounted to 50% of the amount of net purchases, P3,000 of which were unpaid as of December 31.

5. Manufacturing overhead were 150% of the direct labor cost. All were paid in cash except for the depreciation of the factory equipment of P20,000.

6. 90% of the goods placed in process were completed during the period.

7. 3⁄4 of the goods completed were sold.

8. Gross profit margin was 40% of the cost of sales.

9. 4/5 of the sales were collected in cash during the period.

10. Marketing expenses amounted to 1⁄4 of net purchases. All were pain in cash except for the depreciation of the marketing equipment of P7,000.

11. Administrative expenses amount to 80% of the marketing expenses. All were pain in cash except for the depreciation of the office equipment of P4,000.

12. Contributed capital was P600,000.

13. All fixed assets were purchased for cash on January 02, 2020.

14. The annual depreciation rates used during 2020 were:

Factory equipment 8%

Marketing equipment 10%

Office equipment 10%

15. Income before income tax was P38,540.

16. Income tax provision was 30% of income before income tax.

Requirements:

Problem 1. Statement of cost of goods manufactured for the year ended December 31, 2020.

Problem 2. Income statement for the year ended December 31, 2020.

Problem 3. Balance sheet as of December 31, 2020.