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    02 ELMS Activity 2

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    Kevin Panio
    Tom Corporation incurred various production costs in manufacturing their products totaling P391,500. This includes materials, depreciation, taxes, labor, supplies, commissions and salaries. Work-in-process inventory increased from P10,000 to P14,000 during the year. Calculating the cost of goods manufactured results in P395,500. To calculate cost of goods sold, beginning finished goods inventory of P60,500 is added to cost of goods manufactured of P395,500 and ending finished goods inventory of P50,600 is subtracted, giving a cost of goods sold of P405,400.

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    02 ELMS Activity 2

    Uploaded by

    Kevin Panio
    119 views2 pages
    Tom Corporation incurred various production costs in manufacturing their products totaling P391,500. This includes materials, depreciation, taxes, labor, supplies, commissions and salaries. Work-in-process inventory increased from P10,000 to P14,000 during the year. Calculating the cost of goods manufactured results in P395,500. To calculate cost of goods sold, beginning finished goods inventory of P60,500 is added to cost of goods manufactured of P395,500 and ending finished goods inventory of P50,600 is subtracted, giving a cost of goods sold of P405,400.

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    02 ELMS Activity 2-Converted

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    Tom Corporation incurred various production costs in manufacturing their products totaling P391,500. This includes materials, depreciation, taxes, labor, supplies, commissions and salaries. Work-in-process inventory increased from P10,000 to P14,000 during the year. Calculating the cost of goods manufactured results in P395,500. To calculate cost of goods sold, beginning finished goods inventory of P60,500 is added to cost of goods manufactured of P395,500 and ending finished goods inventory of P50,600 is subtracted, giving a cost of goods sold of P405,400.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    119 views2 pages

    02 ELMS Activity 2

    Uploaded by

    Kevin Panio
    Tom Corporation incurred various production costs in manufacturing their products totaling P391,500. This includes materials, depreciation, taxes, labor, supplies, commissions and salaries. Work-in-process inventory increased from P10,000 to P14,000 during the year. Calculating the cost of goods manufactured results in P395,500. To calculate cost of goods sold, beginning finished goods inventory of P60,500 is added to cost of goods manufactured of P395,500 and ending finished goods inventory of P50,600 is subtracted, giving a cost of goods sold of P405,400.

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    © All Rights Reserved
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    BM2003

    Tom Corporation
    Tom Corporation incurred the following costs while manufacturing its product.

    Materials used in production P120,000 Advertising expense P45,000


    Depreciation on plant 60,000 Property taxes on plant 19,000
    Property taxes on store 7,500 Delivery expense 21,000
    Labor costs of assembly-line workers 110,000 Sales commissions 35,000
    Factory supplies used 25,000 Salaries paid to sales clerks 50,000

    Work-in-process inventory was P10,000 at January 1 and P14,000 at December 31. Finished goods inventory
    was P60,500 at January 1 and P50,600 at December 31. Note: Assume all materials were direct.
    Requirement: Using the given information, compute for: (2 items x 5 points)
    1. Cost of goods manufactured
    - 120,000 + 60,000 + 7,500 + 110,000 + 25,000 + 19,000 + 50,000
    - = 391,500
    - 10,000 + 391,500 – 14,000
    - =395,500
    2. Cost of goods sold
    - 60,500 + 395,500 – 50,600
    - = 405,400
    Rubric for grading:
    PERFORMANCE INDICATORS POINTS
    Correct accounts and amounts used 3
    Computed final amounts are correct/balanced 2
    TOTAL 5
    02 eLMS Activity 2 *Property of STI
    Page 1 of 1

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