9.Determinethe Raw Materials- Ending Balance using the following data obtained from Lancelot Company * 10.The amount of raw materials available for use is: *

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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9.Determinethe Raw Materials- Ending Balance using the following data obtained from Lancelot Company *

10.The amount of raw materials available for use is: *

> Cost of goods manufactured, P187,500
> Inventory variations are as follows: raw materials ending inventory is one third based on raw materials
beginning; no initial inventory of work in process, but at end of period P12,500 was on hand; finished
goods inventory was four times as large at end of period as at the start.
> Net income after taxes amounted to P26,000, income tax rate is 35%.
> Purchase of raw materials amounted to net income before taxes
> Breakdown of costs incurred in manufacturing was as follows:
Raw materials consumed, 50%
Direct Labor, 30%
Overhead, 20%
Transcribed Image Text:> Cost of goods manufactured, P187,500 > Inventory variations are as follows: raw materials ending inventory is one third based on raw materials beginning; no initial inventory of work in process, but at end of period P12,500 was on hand; finished goods inventory was four times as large at end of period as at the start. > Net income after taxes amounted to P26,000, income tax rate is 35%. > Purchase of raw materials amounted to net income before taxes > Breakdown of costs incurred in manufacturing was as follows: Raw materials consumed, 50% Direct Labor, 30% Overhead, 20%
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