Please check if my statement of the cost of goods manufactured and sold in good form is correct.Put an explanation why is it correct or not. Nilk Specialty ProductsIncome StatementFor the month ended January 31, 2020Sales (net)Less costs and expenses:Raw materials purchasesP790,000P254,000200,00095,00070,00062,00043,00030.000Direct labor costAdvertising expenseSelling and administrative salariesRent on factory facilitiesDepreciation on sales equipmentDepreciation on factory equipmentIndirect labor costUtilities expenseInsurance expense29,00014,0006,000803,000(P13,000)Net lossPrior to 2019, the company has been operating with a profit. Mr. Nilk,the accuracy of the report. As his friend, you were requested to review the income statementand make the necessary corrections. After examining the manufacturing costs record, youhave acquired the following additional data.ownersuspectinga. Inventory balances at the beginning and end of January 2020 were:January 1P20,00014,00030,000January 31P32,00016,00048,000Raw materialsWork in processFinished goodsb. Only 60% of the utilities expense and 70% insurance expense apply to the factory, therests should be charged to the selling and administrative activities. NILK SPECIALTY PRODUCTSSTATEMENT OF COST OF GOODS MANUFCTURE AND SOLDFor the month ended Januory 312020Raw materials – beginningP 20,000Add net Purchases254,000Raw materials available for use274,000Less raw materials – ending(32,000)Raw materials used242,000Add: Direct labor200,000Overhead:Rent on factory facilities62,000Depreciation on factoryIndirect labor cost30,00029,000Utilities expense8,400Insurance expense4,200Total overhead cost133,600Total manufacturing cost575,600Add work in process - beginning133,600Total goods placed in process709,200Less work in process – ending16,000Cost of goods manufactured573,600Add finished goods beginning30,000Total goods available for sale603,600Less finished goods ending48,000P 555,400Cost of goods manufactured and sold

Cost of goods manufactured shows total costs incurred on manufacturing and production of goods. It…

Answered: Please check if my statement of the…

Please check if my statement of the cost of goods manufactured and sold in good form is correct. Put an explanation why is it correct or not.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 5E: Prepare a cost of goods sold budget for MacLaren Manufacturing Inc. for the year ended December 31,...

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