Compute the following1. Cost of goods sold2. Work In process Jan 1 2016 Problem 17: Income StatementMARK Inc. is engaged in the business of manufacturing basket balls. Thecompany employs actual costing system. The company uses a single accountfor direct and indirect materials. The company provided the following data forthe year ended December 31, 2016:Gross salesSales returnsGross purchasesPurchase returns, allowance and discountFreight inTotal costs of factory laborDepreciation of factory assetsExpired insurance on factory assetsUtilities expense on factoryTotal administrative expensesTotal marketing expenses9,500,000500,0001,000,000200,000400,0001,000,000300,000100,000500,0002,000,0003,000,000Inventories are as follows:December 31January 1100,000Raw materialsWork in processFinished goods300,000200,000600,000500,000The following additional data are provided:1. The net profit ratio of the company before income tax for the year endedDecember 31, 2016 was 10% of net sales.2. The direct labor cost for the year was four times the cost of indirect labor.3. The cost of indirect materials used was P100,000.

Cost of goods sold involves the cost incurred in the production process of the company.

MARK Inc. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2016:

MARK Inc. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2016:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 4PA: Manufacturing income statement, statement of cost of goods manufactured Several items are omitted...

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