AIRA SANTOS VIBAR BSA1-BRIDGING

PROBLEM 9-2
Masay Company
Statement of Cost of Goods Manufactured
For the year ended December 31, 2021

Raw Materials - January 1

Purchases
Raw materials available for use 3,200,000
Less: Raw materials - December 31 280,000
Raw Materials used
Direct Labor
Factory Overhead:
Indirect Labor 250,000
Superintendence 210,000
Ligh, Heat, Power 320,000
Rent - factory building 120,000
Repair and Maintenance - machinery 50,000
Factory supplies used 110,000
Depreciation - Machinery 60,000
Total Manufacturing Cost
Goods in Process - January 1
Total Cost of goods in process
Less: Goods in process - December 31
Cost of Goods Manufactured
 COST OF GOODS MANUFACTURED

Masay Company
Income Statement
200,000 For the year ended December 31, 2021
3,000,000 Notes
Net sales revenue 1
Cost of Goods sold 2
2,920,000 Gross income
950,000 Other income 3
Total Income
Expenses:
Selling Expenses 4 830,000
Administrative expenses 5 590,000
Other expense 6 300,000
Income before tax
Income tax expense
1,120,000 Net income
4,990,000
240,000
5,230,000 Note 1 - Net Sales revenue
- 170,000
5,060,000 Sales
Sales Returns and Allowances
Net Sales Revenue 7,450,000

Note 2 - Cost of Goods Sold

Finished goods - Hanuary 1

Cost of goods manufactured
Goods available for sale 5,420,000
Finished goods - December 31 - 300,000
Cost of Goods Sold

Note 3 - Other income

Gain from expropriation 100,000

Interest income 10,000
Gain on sale of equipment 100,000

Note 4 - Selling Expenses

Sales salaries
Advertising
Depreciation - Store equipment 70,000
Delivery expenses
Total

Note 5 - Administrative expenses

Office salaries
Depreciation - office equipment 40,000
Accounting and legal fees 150,000
Office expenses 250,000
Total

Note 6 - Other expense

Earthquake loss 300,000

 NATURE OF EXPENSE ME
MANUFACTURED
Masay Company
ompany Income Statement
atement For the year ended December
December 31, 2021
Net sales Revenue
7,450,000 Other income
- 5,120,000 Total income
2,330,000 Expenses:
210,000 Decrease in finished goods
2,540,000 and goods in process
Raw Material used
Direct Labor
Factory Overhead
1,720,000 Salaries
820,000 Advertising
- 320,000 Depreciation
500,000 Delivery Expenses
Accounting and legal fees
Office expenses
Other expense
Income before tax
7,500,000 Income tax expense
- 50,000 Net Income

Note 1 - Net Sales revenue

360,000
5,060,000 Sales
Sales Returns and Allowances
Net Sales Revenue
5,120,000
Note 2 - Other income

Gain from expropriation

Interest income
Gain on sale of equipment

210,000
Note 3 - Decrease in finished goods and goods in process

400,000 Finished goods

160,000 Goods in process
Total
200,000
830,000 Note 4 - Raw materials used

Raw Materials - January 1

Purchases
150,000 Raw materials available for use
Raw materials - December 31
Raw Materials used

590,000 Note 5 - Factory overhead

Indirect Labor
Superintendence
Ligh, Heat, Power
Rent - factory building
Repair and Maintenance - machinery
Factory supplies used
Depreciation - Machinery

Note 6 - Salaries

Sales Salaries
Office Salaries
Total

Note 7 - Depreciation

Depreciation - store equipment

Depreciation - office equipment
Total

Note 8 - Other expense

Earthquake loss
 NATURE OF EXPENSE METHOD

Masay Company
Income Statement
For the year ended December 31, 2021

7,450,000
210,000
7,660,000

130,000
2,920,000
950,000
1,120,000
550,000
160,000
110,000
200,000
150,000
250,000
300,000 6,840,000
820,000
- 320,000
500,000

7,500,000
- 50,000
7,450,000

100,000
10,000
100,000
210,000

ds and goods in process

January 1 December 1 Decrease
360,000 300,000 60,000
240,000 170,000 70,000
600,000 470,000 130,000
 200,000
3,000,000
3,200,000
280,000
2,920,000

250,000
210,000
320,000
120,000
50,000
110,000
60,000
1,120,000

400,000
150,000
550,000

70,000
40,000
110,000

300,000
PROBLEM 9-3
Christian company
Statement of Cost of Goods Manufactured
For the year ended December 31, 2021

Purchases
Freight in
Total
Increase in raw materials
Raw materials used
Direct labor
Factory overhead:
Indirect Labor 600,000
Depreciation - machinery 50,000
Factory taxes 130,000
Factory supplies expense 120,000
Factory superintendence 480,000
Factory Maintenance 150,000
Factory heat, light, and power 220,000
Total manufacturing cost
Decrease in goods in process
Cost of goods manufactured
 Christian company
ed Income Statement
For the year ended December 31, 2021
Note
1,600,000 Sales
80,000 Cost of goods Sold 1
1,680,000 gross income
- 100,000 Expenses:
1,580,000 Selling expenses 2 800,000
1,480,000 Administrative expenses 3 930,000
Income before tax
income tax expense
Net income

Note 1 - Cost of goods sold

1,750,000
4,810,000 Cost of goods manufactured 4,900,000
90,000 Decrease in finished goods 200,000
4,900,000 Cost of goods sold 5,100,000

Note 2 - Selling Expenses

Sales Salaries 520,000

Advertising 120,000
Delivery expense 160,000
Total 800,000

Note - 3 Administrative expenses

Office supplies expense 30,000

office salaries 800,000
Doubtful accounts 100,000
Total 930,000
any

mber 31, 2021

8,000,000
- 5,100,000
2,900,000

1,730,000
1,170,000
- 170,000
1,000,000