Marvin Manufacturing Company has developed the following information for the year ended December 31, 2014

Raw Materials Inventory, January 1 P 175,000

Purchases 250,000
Raw Materials Inventory, December 31 125,000
Direct Labor 270,000
Factory overhead (120% of direct labor cost)
Work in Process Inventory, January 1 90,000
Work in Process Inventory, December 31 120,000
Finished Goods Inventory, January 1 100,000
Finished Goods Inventory, December 80,000

Required: Cost of goods sold statement

Problem 3
Dona company submits the following date for May, 2014
Direct labor cost P 160,000
Cost of goods sold 250,000
Factory overhead – applied at 150% of direct labor costs.
Inventories May 1, 2014 May 31, 2014
Finished goods P 150,000 P 122,000
Work in process 129,200 124,000
Materials 124,000 115,000

Required: Cost of goods sold statement

Problem 4
Ram Company completed the following transactions for October, 2014
a) Purchased on account direct materials of P 150,000.
b) The factory payroll was recorded. Direct labor P 56,000; indirect labor P 19,000. Employee payroll
deductions were recorded as follows:

Withholding taxes P 11,200

SSS Premiums 2,400
Phil Health Contributions 375
Pag Ibig Funds Contribution 1,620
 c) Indirect materials of P 20,000 were purchased.
d) Employer payroll tax expense is recorded as follows:

SSS Premiums P 3,600

Phil Health Contributions 375
Pag Ibig Funds Contribution 1,620

e) Materials issued: direct materials – P 120,000; indirect materials – P 10,000.

f) Defective materials P 2,000 were returned to vendors.
g) Accounts payable totaling P 148,300, including accrued payroll, were paid.
h) Sundry factory expenses of P 24,900 were recorded as liabilities.
i) Factory overhead was charged to production at P 120% direct labor costs.
j) Goods completed with a total cost of P 175,000 were transferred to finished goods.
k) Sales were P 220,000 and cost P 140,000 to produce.

Requirement:
1. Entries to record the transactions given above.
2. Statement of cost of goods sold.

Problem 5
Darvin Company contained the following account balances:
Cash P 100,000
Accounts Receivable 60,000
Finished Goods 35,000
Work in Process 18,000
Materials 50,000
Accounts Payable 10,000
Accrued Payroll 8,000
Common Stock 200,000
Retained Earnings 45,000

During January, 2014, the following transactions were completed.

a) Materials purchased on account, P 200,000
b) Factory overhead incurred on account, P 35,000
c) Payroll for the period consists of: direct labor – P 140,000; indirect labor – P 30,000; sales salaries – P
25,000; and administrative salaries – P 15,000.
Deductions from payroll are as follows:
Withholding taxes P 18,520
SSS Premiums 8,400
Phil Health Contributions 1,125
Pag Ibig Funds 6,300
d) P 175,000 was paid for payroll
e) Computation of employer’s payroll tax is as follows:
Factory Selling Administrative
SSS Premiums P 8,500 P 1,250 P 750
Phil Health 600 375 150
Pag Ibig Fund 5,100 750 450

f) Materials issued: direct materials – P 185,000; indirect – P 35,000.

g) Factory overhead was charged to productions at 80% of direct labor cost.
h) Work finished and placed in stock – P 410,000
i) Cost of goods sold – P 385,000. The mark up was 40% of cost.
j) Cahs collected from customers, P 405,000.
k) Payments for liabilities amounted to P 220,000, other than payroll.
Requirements for Problem 5
1. Journal entries to record the above transactions.
2. Cost of Goods Sold Statement for January, 2014.
3. Income statement for January, 2014
4. Balance sheet as of January 31, 2014.