BM2003
Superman
Company
Superman Company has the following costs and expenses for the year ending December 21, 2X20.
Raw materials, 1/1/20
Raw materials, 12/31/20
Raw materials purchases
Work-in-process, 1/1/20
Work-in-process, 12/31/20
Finished goods, 1/1/20
Finished goods, 12/31/20
Direct labor
Factory manager’s salary
Insurance, factory
P30,000 Property taxes, factory
P6,000
building
20,000 Sales revenue
1,500,000
205,000 Delivery expenses
100,000
80,000 Sales commissions
150,000
50,000 Indirect labor
105,000
110,000 Factory machinery rent
40,000
120,000 Factory utilities
65,000
350,000 Depreciation, factory building
24,000
35,000 Administrative expenses
300,000
14,000
Requirement:
1. Prepare a cost of goods manufactured schedule for Superman Company for 2X20. Note:
Assume that all raw materials used were direct materials. (10 points)
2. Prepare an income statement for Superman Company for 2020. (10 points)
3. Assume that Superman Company’s accounting records show the balances of the following
current asset accounts: Cash P17,000, Accounts Receivable (net) P120,000, Prepaid
Expenses P13,000, and Short-Term Investments P26,000. Prepare the current assets section
of the balance sheet for Superman Company as of December 31, 2020. (10 points)
SUPERMAN’s COMPANY
Schedule of Cost of Goods Manufactured
For the Year Ending December 31,2X20
Direct Materials
Beginning raw materials inventory, Jan 1
Plus: Purchases of raw materials
Raw materials available
Less: Ending raw materials, Dec 31
Raw materials used to production
Direct Labor
Manufacturing Overhead
Indirect Labor
Factory utilities
Factory Machinery rent
Factory Manager’s salary
Depreciation, factory building
Insurance, factory
Property taxes, Factory building
Total manufacturing costs
Add: Beginning work in process inventory, Jan, 1
Less: Ending work in process inventory, Dec 31
Cost of goods manufactured
₱30,000
205,000
₱235,000
20,000
₱215,000
350,000
₱105,000
65,000
40,000
35,000
24,000
14,000
6,000
289,000
854,000
80,000
50,000
₱884,000
SUPERMAN’s COMPANY
Income Statement
For the Year Ending December 31,2X20
₱1,500,000
Sales Revenue
Cost of goods sold:
Finish goods January 1
Add: Cost of goods manufactured
Cost of Goods available for sale
Less: Finished good, December 31
Total Cost of goods sold
Gross profit
Expenses
Delivery Expenses
Sales Commission
Administrative Expenses
Total Expenses
NET INCOME
₱110,000
884,000
994,000
120,000
874,000
₱626,000
₱100,000
150,000
300,000
550,000
₱76,000
SUPERMAN’s COMPANY
Currents Assets Balance Sheet
For the Year Ending December 31,2X20
ASSETS
Current assets
Cash
Accounts Receivable
Prepaid Expenses
Short term investment
Inventory
Raw materials
WIP
Finished goods
Total Current Assets
Rubric for grading:
PERFORMANCE INDICATORS
Correct accounts and amounts used
Computed final amounts are correct/balanced
TOTAL
₱17,000
120,000
13,000
26,000
₱20,000
50,000
120,000
POINT
S
6
4
10
₱176,000
190,000
₱366,000