DIRECT MATERIALS

PARTICULARS QTY Unit Price Total

Tilapia Fish (Kilos) 32 110 3520
Non Chlorinated Water (liters) 66 16 1056
Brown Sugar (Kilos) 32 52.5 1680
IMO (Liters) 3 200 600
TOTAL COST/YEAR

INDIRECT MATERIALS
PARTICULARS QTY Unit Price Total
Mosquito Net (pcs) 2 100 200
Barrels (pcs) 21 500 10,500
Rubber Bands - - 200
Soil (kilos P150 for every 25 kilos) 5 150 750
Filter 3 50 150
Packaging Container (pcs) 7738 70 541,660
TOTAL COST PHP 553,460

DIRECT LABOR
Working days/
Working Hrs / day Working months
month
Total Hours Worked 8 20 12
Multipy by Direct Labor rate /Hour
TOTAL DIRECT LABOR COST

NOTE:
Minimum Wage rate per day 334
Divided by Working hours per day 8
Hourly Rate 41.75

INDIRECT LABOR
No. of Workers Wage Rate / day Working Days
Security Guard-Factory 2 334 30
Supervisor 1 500 20
TOTAL INDIRECT LABOR COST

OVERHEAD
Amount
Expiration of 3 months Factory Prepaid
Rent of 18 750 (expensed out)
56,250
Rent expense for remaining 9 months
18 750 * 9 168,750
Factory Utilities expense 10 000 * 12 mos. 120,000
Indirect Materials 553,460
Indirect Labor 360,480
TOTAL PHP 1,258,940.00

TOTAL MANUFACTURING COST

Direct Materials Used 1,645,440.00
Direct Labor 480,960.00
Factory Overhead 1,258,940.00
TOTAL MANUFACTURING COST PHP 3,385,340.00

PRICING
Total Manufacturing cost PHP 3,385,340.00
Units to be produced 7,738.00
Cost per unit PHP 437.49547687

SUPPORTING COMPUTATIONS FOR FINANCIAL STATEMENTS

Cost of Goods Manufactured
Total Manufacturing Cost PHP 3,385,340.00
Work In Process Inventory, End 1250 units * 443.75 546,869.35
Cost of Goods Manufactured 2,838,470.65

Finished Goods Inventory End

Unfinished goods *0
* All goods manufactured are assumed to have been sold.

Cost of Goods Sold

Cost of Goods Manufactured 2,838,470.65
Finished Goods Inventory, End -
Cost of Goods sold 2,838,470.65

STATEMENT OF COMPREHENSIVE INCOME

Salaries Expense (Admin) for 2018
HR Mngr P400*20*12 96,000
Accountant P375*20*12 90,000
Finance Mngr P400*20*12 96,000
General Mngr P349*20*12 83,760
Total Salaries Expense (Admin) 365,760 270000

Salaries Expense (Selling) 2018

Sales & Mktg Mngr P400*20*12 96,000
Sales Rep P340*20*12 81,600
Delivery Staff P334*20*12 80,160
Total Salaries Expense (Selling) 257,760 240480
IALS
Fermentation Days Months (Annual)
20 12 844,800
20 12 253,440
20 12 403,200
20 12 144,000
PHP 1,645,440.00

PHP 2,198,900.00

No. of Factory
Wokers Total
6 11,520
41.75
PHP 480,960.00

Months
12 240,480
12 120,000
PHP 360,480.00
 PRICING
Cost per unit PHP 437.50
Mark Up 32%
Cost per unit PHP 577.4940295

PHP 3,746,781.26
 JOURNAL ENTRIES (SETTING UP)

Cash 4,000,000
M, Capital 1,000,000
E, Capital 1,000,000
C, Capital 1,000,000
S, Capital 1,000,000

Prepaid Rent 225,000

Cash 225,000

Refundable Deposit 300,000

Cash 300,000

Delivery Vehicle 150,000

Cash 150,000

Computer Equipment 57,000

Cash 57,000

Furnitures & Fixtures 91,071

Cash 91,071
Air Conditioning Unit (2) 13,996
Exhaust Fan (2) 27,192
CCTV Cameras (12) 8,988
Water Dispenser (2) 1,598
Office Tables (10) 7,500
Office Chairs (12) 4,800
Filing Cabinet (6) 6,000
Employee Locker (3) 19,497
Monobloc (2) 1,500

Office Vehicle 116,989

Cash 116,989
 JOURNAL ENTRIES (MANUFACTURING COSTS)

RM Inventory 2,198,900
Cash 2,198,900
Purchase of RMI

WIP Inventory 1,645,440

Factory Overhead 553,460
RM Inventory 2,198,900
Transfer to production

WIP inventory 480,960

Factory Overhead 360,480
Salaries & Wages Payable 841,440

Factory Overhead 56,250

Prepaid Rent 56,250

Factory Overhead 120,000

Utilities Payable 120,000

Factory Overhead 168,750

Prepaid Rent 168,750

WIP Inventory 1,258,940

Factory Overhead
Transfer of Actual Overhead to WIP 1,258,940

Finished Goods Inventory 2,838,471

WIP Inventory 2,838,471
6 488 units * 437.49
Finished units: 6 488 units

Cash 3,803,857
Sales 3,803,857
6 488 units * 577.49

Cost of Goods Sold 2,838,471

Finished Goods Inventory 2,838,471
6 488 units * 437.49
Sold Units: 6 488 units
 JOURNAL ENTRIES (OPERATING)

Rent expense 56,250

cash 56,250
6 250 * Remaining 9 mos.

Rent expense 18,750

cash 18,750

Advertising expense 50,000

Cash 50,000

Utilities expense 60,000

Cash 60,000
5 000 * 12 mos.

Depreciation Expense 30,000

Acc. Depreciation - Delivery Vehicle 30,000
150 000 / 5 yrs

Depreciation Expense 11,400

Acc. Depreciation - Computer Equipment 11,400
57 000 / 5 yrs

Depreciation Expense 18,214

Acc. Depreciation - Furnitures & Fixtures 18,214
91 071 / 5 yrs

Depreciation Expense 23,398

Acc. Depreciation - Office Vehicle 23,398
116 989 / 5 yrs

Salaries Expense (Admin) 365,760

Cash 365,760
HR Mngr 96,000
Accountant 90,000
Finance Mngr 96,000
General Mngr 83,760

Salaries Expense (Selling) 257,760

Cash 257,760
Sales &Mktg Mngr 96,000
Sales Rep 81,600
Delivery Staff 80,160
75,000

83,012
 Schedule of Cost of Goods Sold
Direct Materials Used
Direct Materials, Beginning -
Purchases 1,645,440
Direct Materials, Ending - 1,645,440
Direct Labor 480,960
Factory Overhead 1,258,940
Total Manufacturing Cost 3,385,340
Work in process Inventory beginning -
Work in process Inventory Ending 546,869.35
Cost of goods Manufactured 2,838,470.65
Finished goods Inventory Beginning -
Finished goods Inventory Ending -
Cost of Goods Sold 2,838,470.65

*See Mfg Cost Computation

MECS Company
Statement of Cash Flows
For the Year Ended December 31, 2018

Cash Flows from operating Activities

Cash Receipts:
Sales 3,746,781.26
Cash Disbursements:
Prepaid Rent 225,000.00
Refundable Deposit 225,000.00
Raw Materials 2,198,900.00
Rent Expense 75,000.00
Advertising expense 50,000.00
Utilities expense 60,000.00
Salaries expense (Selling) 240,480.00
Salaries expense (Admin) 270,000.00 3,356,380.00
Net Cash provided by Operating Activities 390,401.26

Cash Flows from Invesing Activities

Cash Disbursements:
Delivery Vehicle 150,000.00
Computer Equipment 57,000.00
Furnitures & Fixtures 91,071.00
Office Vehicle 116,989.00 415,060.00
Net cash used by Investing Activities (415,060.00)

Cash Flows from Financing Activities 3,364,380.00

Cash Receipts from Investment 2,000,000.00
Net Increase in Cash 1,975,341.26
Add: Cash beginning -
Cash Balance at the end of the year 1,975,341.26
 MECS Company
Statement of Comprehensive Income
For the Year Ended December 31, 2018

Sales 3,746,781.26
Cost of Goods Sold (2,838,470.65)
Gross Income 908,310.61
Operating Expenses:
Selling Expenses
Advertising expense 50,000.00
Salaries for Sales and Marketing Employees 240,480.00 290,480.00
Administrative Expenses
Rent expense 75,000.00
Salaries Expense 270,000.00
Utilities Expense 60,000.00
Depreciation expense 83,012.00 508,012.00 (798,492.00)
Net Income before Income tax 109,818.61
Income Tax expense 32,945.58
Net income After Income Tax 76,873.03

MECS Company
Statement of Financial Position
As of December 31, 2018

ASSETS
Current Assets
Cash 1,975,341.26
Work in Process Inventory 546,869.35 2,522,210.61

Non Current Assets

Refundable Deposit 225,000.00
Delivery Vehicle 150,000.00
Accumulated Depreciation 30,000.00 120,000.00
Computer Equipment 57,000.00
Accumulated Depreciation 11,400.00 45,600.00
Furnitures & Fixtures 91,071.00
Accumulated Depreciation 18,214.20 72,856.80
Office Vehicle 116,989.00
Accumulated Depreciation 23,397.80 93,591.20 557,048.00
TOTAL ASSETS 3,079,258.61

LIABILITIES AND EQUITY

Liabilities
Salaries &Wages Payable 841,440.00
 Utilities Payable 120,000.00
Income Tax Payable 32,945.58 1,002,385.58

Partners' Equity
M, Capital 519,218.26
E, Capital 519,218.26
C, Capital 519,218.26
S, Capital 519,218.26 2,076,873.03
TOTAL LIABILITIES AND EQUITY 3,079,258.61
 MECS Company
Statement of Comprehensive Income
As of Decmeber 31, 2018
M E C
Partners' Capital, Beg 500,000.00 500,000.00 500,000.00
Profit Distribution 19,218.26 19,218.26 19,218.26
Partners' Capital, End 519,218.26 519,218.26 519,218.26

8000
12000

798,492.00

-
8000
ncome
8
S TOTAL
500,000.00 2,000,000.00
19,218.26 76,873.03
519,218.26 2,076,873.03