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    Act 4 Masay Company (SCGS)

    Uploaded by

    Reginald Mundo
    The document presents the statement of cost of goods sold for Masay Company for the period ended December 31, 20xx. It shows the costs of raw materials, direct labor, and factory overhead totaling $4,990,000 to manufacture goods. Adjusting for changes in inventory, the total cost of goods sold is $5,120,000.

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    © All Rights Reserved
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    Act 4 Masay Company (SCGS)

    Uploaded by

    Reginald Mundo
    13 views4 pages
    The document presents the statement of cost of goods sold for Masay Company for the period ended December 31, 20xx. It shows the costs of raw materials, direct labor, and factory overhead totaling $4,990,000 to manufacture goods. Adjusting for changes in inventory, the total cost of goods sold is $5,120,000.

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    Act 4 Masay Company (Scgs)

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    The document presents the statement of cost of goods sold for Masay Company for the period ended December 31, 20xx. It shows the costs of raw materials, direct labor, and factory overhead totaling $4,990,000 to manufacture goods. Adjusting for changes in inventory, the total cost of goods sold is $5,120,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    13 views4 pages

    Act 4 Masay Company (SCGS)

    Uploaded by

    Reginald Mundo
    The document presents the statement of cost of goods sold for Masay Company for the period ended December 31, 20xx. It shows the costs of raw materials, direct labor, and factory overhead totaling $4,990,000 to manufacture goods. Adjusting for changes in inventory, the total cost of goods sold is $5,120,000.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    MASAY COMPANY

    Statement of Cost of Goods Sold


    December 31, 20xx

    Purchases 3,000,000.00
    Increase: Raw Materials (80,000.00)
    Raw materials used 2,920,000.00
    Direct labor 950,000.00
    Factory Overhead:
    Indirect labor 250,000.00
    Superintendence 210,000.00
    Light, heat and power 320,000.00
    Rent- factory building 120,000.00
    Repair and maintenance - machinery 50,000.00
    Factory supplies used 110,000.00
    Depreciation - machinery 60,000.00 1,120,000.00
    Total Manufacturing Cost 4,990,000.00
    Decrease: Goods in Process 70,000.00
    Cost of Goods Manufactured 5,060,000.00
    Decrease: Finished Goods 60,000.00
    Cost of Goods Sold 5,120,000.00
    Cost of goods sold method
    MASAY COMPANY
    Income Statement
    Year ended December 31, 20xx

    Note
    Net sales (1) 7,450,000.00
    Cost of goods sold (5,120,000.00)
    Gross income 2,900,000.00
    Other income (2) 210,000.00
    Total income 2,540,000.00
    Expenses:
    Distribution costs (3) 830,000.00
    Administrative expenses (4) 590,000.00
    Other expenses (5) 300,000.00 1,720,000.00
    Income before tax 820,000.00

    Income tax expense 320,000.00


    Net Income 500,000.00
    Note 1: Net sales Note 5: Other expenses
    Sales 7,500,000.00 Casualty loss - earthquake 300,000.00
    Sales returns and allowances (50,000.00) Total: 300,000.00
    Total: 7,450,000.00

    Note 2: Other income


    Gain from expropriation of asset 100,000.00
    Gain on sale of equipment 100,000.00
    Interest income 10,000.00
    Total: 210,000.00

    Note 3: Distribution cost


    Sales Salaries 400,000.00
    Advertising 160,000.00
    Depreciation – store equipment 70,000.00
    Delivery expenses 200,000.00
    Total: 830,000.00

    Note 4: Administration expenses


    Offfice Salaries 150,000.00
    Depreciation – office equipment 40,000.00
    Accounting and legal fees 150,000.00
    Office expense 250,000.00
    Total: 590,000.00

    Nature of expense method


    MASAY COMPANY
    Income Statement
    Year ended December 31, 20xx

    Not
    e
    Net sales (1) 7,450,000.00
    Other income (2) 210,000.00
    Total income 7,660,000.00

    Expenses:
    Decrease in inventory (3) 130,000.00
    Raw materials used (4) 2,920,000.00
    Employe benefit cost (5) 550,000.00
    Direct labor 950,000.00
    Advertising 160,000.00
    Delivery expenses 200,000.00
    Accounting and legal fees 150,000.00
    Office expense 250,000.00
    Depreciation (6) 110,000.00
    Factory overhead (7) 1,120,000.00
    Other expenses (8) 300,000.00 6,840,000.00
    Income before tax 820,000.00

    Income tax expense 320,000.00


    Net Income 500,000.00

    Note 1: Net sales Note 4: Raw materials used


    Sales 7,500,000.00 Purchases 3,000,000.00
    Sales returns and allowances (50,000.00) Increase: Raw Materials (80,000.00)
    Total: 7,450,000.00 Total: 2,920,000.00

    Note 2: Other income Note 5: Employee benefit cost


    Gain from expropriation of asset 100,000.00 Sales Salries 400,000.00
    Gain on sale of equipment 100,000.00 Office Salaries 150,000.00
    Interest income 10,000.00 Total: 550,000.00
    Total: 210,000.00

    Note 3: Decrease in inventory Note 6: Depreciation


    Decrease: Finished goods 60,000.00 Depreciation - store equipment 70,000.00
    Decrease: Goods in process 70,000.00 Depreciation – office equipment 40,000.00
    Total: 130,000.00 Total: 110,000.00

    Note 7: Factory overhead Note 8: Other expenses


    Indirect labor 250,000.00 Casualty loss - earthquake 300,000.00
    Superintendence 210,000.00 Total: 300,000.00
    Light, heat and power 320,000.00
    Rent- factory building 120,000.00
    Repair and maintenance - machinery 50,000.00
    Factory supplies used 110,000.00
    Depreciation - machinery 60,000.00
    Total: 1,120,000.00

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