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The document summarizes the cost of goods sold method used by Masay Company to calculate its cost of goods sold for its income statement for the year ended December 31, 2019. It shows the calculation of cost of goods manufactured including raw materials used, direct labor costs, and factory overhead expenses. It then calculates cost of goods sold by adjusting the cost of goods manufactured for changes in finished goods and goods in process inventory.

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5K views11 pages

Valix Answers

The document summarizes the cost of goods sold method used by Masay Company to calculate its cost of goods sold for its income statement for the year ended December 31, 2019. It shows the calculation of cost of goods manufactured including raw materials used, direct labor costs, and factory overhead expenses. It then calculates cost of goods sold by adjusting the cost of goods manufactured for changes in finished goods and goods in process inventory.

Uploaded by

E.D.J
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Masay Company Cost of Sales Method

Statement of Cost of Goods Manufactured Masay Comp


Year Ended Dec 31, 2019 Income Statem
Year Ended Dec.

Raw Materials - January 1 200,000.00 Net sales Revenue


Purchases 3,000,000.00 Cost of goods sold
Raw Materials available for use 3,200,000.00 Gross income
Less: Raw materials -December 31 280,000.00 Other income
Raw Materials Used 2,920,000.00 Total Income
Direct Labor 950,000.00 Expenses
Factory Overhead Distribution Cost
Indirect Labor 250,000.00 Administrative Expese
Superitendence 210,000.00 Other expenses
Light, Heat, and Power 320,000.00 Income before tax
Rent- Factory Building 120,000.00 Income tax expense
Repair and Maintenance- Machi 50,000.00 Net Income
Factory Supplies Used 110,000.00
Depreciation - Machinery 60,000.00 1,120,000.00
Total Manufacturing Cost 4,990,000.00 Note 1 - Net Sales Revenue
Goods in process - January 1 240,000.00 Sales
Total Cost of goods in process 5,230,000.00 Sales Return and Allowances
Less: Goods in process - December 31 170,000.00 Net Sales Revenue
COGMS 5,060,000.00
Note 2 - Cost of Goods sold
Finished Goods - Jan. 1
COGMS
Good available for sale
Finished Goods - Dec.31
COGS

Note 3 - Other Income


Gain from expropriation
Interest income
Gain on sale of equipment

Note 4 - Distribution Costs


Sales salaries
Advertising
Depreciation - store equipment
Delivery expenses
Total
Note 5 - Administrative Expenses
Office Salaries
Depreciation - Office Equipment
Accounting and legal fees
Office Expenses
Total

Note 6 - Other Expenses


Earthquake loss
ales Method Nature of Expense Method
Masay Company Masay Company
Income Statement Income Statement
Year Ended Dec.31 2019 Year Ended Dec.31 2019
Notes
1 7,450,000.00 Net sales Revenue
2 (5,120,000.00) Other Income
2,330,000.00 Total Income
3 210,000.00 Expenses
2,540,000.00 Decrease in finished good
Raw materials used
Distribution Cost 4 830,000.00 Direct Labor
Administrative Expese 5 590,000.00 Factory Overhead
Other expenses 6 300,000.00 1,720,000.00 Salaries
820,000.00 Advertising
(320,000.00) Depreciation
500,000.00 Delivery Expenses
Accounting and Legal fees
Office expenses
Net Sales Revenue Other Expenses
7,500,000.00 Income before tax
urn and Allowances (50,000.00) Income tax expenses
7,450,000.00 Net Income

ost of Goods sold Note 1 - Net sales Revenue


Goods - Jan. 1 360,000.00 Sales
5,060,000.00 Sales return and allowances
lable for sale 5,420,000.00 Net sales revenue
Goods - Dec.31 (300,000.00)
5,120,000.00 Note 2 - Other income
Gain from expropriation
Other Income 100,000.00 Interest Income
expropriation 10,000.00 Gain on sale on equipment
100,000.00
ale of equipment 210,000.00 Note 3 - Decrease in finished goods and goods in process
Jan. 1
Distribution Costs Finished Goods 360,000.00
400,000.00 Goods in process 240,000.00
160,000.00 Total 600,000.00
tion - store equipment 70,000.00
200,000.00 Note 4 - Raw materials Used
830,000.00 Raw materials - Jan. 1
Purchases
Administrative Expenses Raw materials available for use
150,000.00 Raw materials - Dec. 31
tion - Office Equipment 40,000.00 Raw materials Used
ng and legal fees 150,000.00
250,000.00 Note 5 - Factory Overhead
590,000.00 Indirect Labor
Superintendence
Other Expenses Light, heat, and power
300,000.00 Rent- Factory building
Repair and Maintenance - Machinery
Factory supplies used
Depriciation - Machinery
Total

Note 6 - Salaries
Sales Salaries
Office Salaries
Total

Note 7 - Depreciation
Depreciation - Store
Depreciation - Office
Total

Note 8 - Other expenses


Earthquake loss
Masay Company
Income Statement
Year Ended Dec.31 2019
Notes
1 7,450,000.00
2 210,000.00
7,660,000.00

3 130,000.00
4 2,920,000.00
950,000.00
5 1,120,000.00
6 550,000.00
160,000.00
7 110,000.00
200,000.00
d Legal fees 150,000.00
250,000.00
8 300,000.00 6,840,000.00
820,000.00
(320,000.00)
500,000.00

7,500,000.00
(50,000.00)
7,450,000.00

100,000.00
10,000.00
100,000.00
210,000.00
shed goods and goods in process
Dec. 31 Decrease
300,000.00 60,000.00
170,000.00 70,000.00
470,000.00 130,000.00

200,000.00
3,000,000.00
32,000,000.00
280,000.00
2,920,000.00

250,000.00
210,000.00
320,000.00
120,000.00
- Machinery 50,000.00
110,000.00
60,000.00
1,120,000.00

400,000.00
150,000.00
550,000.00

70,000.00
40,000.00
110,000.00

300,000.00
Berna Company Berna Comp
Income Statement Statement of Financ
Year Ended Dec. 31 , 2019 Dec. 31 20

Sales (1M/25%) 4,000,000.00 Assets


Cost of Goods Sold(45%x4M) (1,800,000.00) Current Asset
Gross Income 2,200,000.00 Cash
Expenses(30% x 4M) (1,200,000.00) Accounts Receivable ( 10% x 4M)
Net Income 1,000,000.00 Inventories
Total Current Assets
Cost of goods sold ( 150% x 30%) 45% Non- current Asset
Net Income(100%-45%-30%) 25% PPE
Total Assets
Solutions
Purchases (1.5M / 75%) 2,000,000.00 Liabilities and
Raw Mats - Dec. 31 500,000.00 Current Liability
Raw Mats used ( 50%x3M) 1,500,000.00 Accounts Payable(25% x 2M)
DL (30%x3M) 900,000.00
FO(20%x3M) 600,000.00 Equity
Total Manufacturing cost 3,000,000.00 Common Stock, P100 par
Goods in process Dec. 31 (1/3x2250000) 750,000.00 Additional Paid in Capital
COGM 2,250,000.00 Retained Earnings
Finished goods - Dec. 31 (25% x 1.8M) 450,000.00 Total Equity
COGS 1,800,000.00 Total liabilities and equity

Note 1 - Inventories
Cash Receipts Raw Mats.- Dec. 31
Cash Investment 1,000,000.00 Goods in process Dec. 31 (1/3x2250000)
Collections 3,600,000.00 4,600,000.00 Finished goods - Dec. 31 (25% x 1.8M)
Cash Disbursement Total
Purchases 1,500,000.00
DL 900,000.00 Note 2 - PPE
FO 500,000.00 Total Cost
Operating Expenses 1,200,000.00 4,100,000.00 Accumulated Depreciation
Cash Balance - Dec. 31 500,000.00 Carrying Amount
Berna Company
Statement of Financial Position
Dec. 31 2019

Assets
Note
500,000.00
Receivable ( 10% x 4M) 400,000.00
1 1,700,000.00
2,600,000.00

2 2,900,000.00
5,500,000.00

Liabilities and Equity

Payable(25% x 2M) 500,000.00

Stock, P100 par 2,500,000.00


l Paid in Capital 1,500,000.00
1,000,000.00
5,000,000.00
5,500,000.00

500,000.00
31 (1/3x2250000) 750,000.00
31 (25% x 1.8M) 450,000.00
1,700,000.00

3,000,000.00
(100,000.00)
2,900,000.00
Rose Company
Statement of Comprehensive Income
Year Ended Dec. 31 2019

Dividend income from investments 9,200,000.00


Distribution funds from trusts 500,000.00
Interest Income on deposits 700,000.00
Income from bank treasury bills 100,000.00
Income from dealing in Securitie and derivatives for trading, net ( 600000-150000 450,000.00
Other income 250,000.00
Total Income 11,200,000.00
Expenses
Admin. Staff costs 3,800,000.00
Sundry Admin Costs 1,200,000.00
Finance Costs 300,000.00 5,300,000.00
Income before income tax 5,900,000.00
Income tax expenses 1,700,000.00
Net income 4,200,000.00
OCI to be reclassified To P/L:
Unrealized gain on forward contract designed as cash flow hedge 400,000.00
Comprehensive Income 4,600,000.00
Advertising 1,500,000.00
Freight Out 750,000.00
Rent for Office Space (1.8M x 1/2) 900,000.00
Sales and salaries and commission 1,400,000.00
Total Distribution Costs 4,550,000.00 C
Property Taxes 250,000.00
Doubtful Accounts 1,600,000.00
Officers' Salaries 1,500,000.00
Insurance 850,000.00
Total Administrative Expenses 4,200,000.00 D

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