BCD Company makes industrial cleaning solvents. Different chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. BDC provided the following information for last year (2020): Raw materials purchases P 250,000 Direct labor 140,000 Depreciation-factory equipment 45,000 Depreciation-factory building 30,000 Depreciation-headquarters building 50,000 Factory insurance 15,000 Property taxes: Factory 20,000 Headquarters 18,000 Utilities for factory 34,000 Utilities for sales office 1,800 Administrative salaries 150,000 Indirect labor salaries 156,000 Sales office salaries 90,000 Beginning balance, Raw materials 124,000 Beginning balance, Work-in-process 124,000 Beginning balance, Finished goods 84,000 Ending balance, Raw materials 102,000 Ending balance, Work-in-process 130,000 Ending balance, Finished goods 82,000 Last year, BCD completed 100,000 units. Sales revenue equaled P 1,200,000, and BCD paid a sales commission of 5% of sales. Required: 1. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost. 2. Prepare an income statement for last year.
BCD Company makes industrial cleaning solvents. Different chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. BDC provided the following information for last year (2020):
Raw materials purchases
P 250,000
Direct labor
140,000
Depreciation-factory equipment
45,000
Depreciation-factory building
30,000
Depreciation-headquarters building
50,000
Factory insurance
15,000
Property taxes:
Factory
20,000
Headquarters
18,000
Utilities for factory
34,000
Utilities for sales office
1,800
Administrative salaries
150,000
Indirect labor salaries
156,000
Sales office salaries
90,000
Beginning balance, Raw materials
124,000
Beginning balance, Work-in-process
124,000
Beginning balance, Finished goods
84,000
Ending balance, Raw materials
102,000
Ending balance, Work-in-process
130,000
Ending balance, Finished goods
82,000
Last year, BCD completed 100,000 units. Sales revenue equaled P 1,200,000, and BCD paid a sales commission of 5% of sales.
Required:
1. Prepare a cost of goods manufactured statement for last year. Calculate the unit
product cost.
2. Prepare an income statement for last year.
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