Republic of the Philippines

Romblon State University

College of Business and Accountancy
Odiongan, Romblon

Final Examination in Accounting for Service, Merchandising & Manufacturing Businesses

Name _______________________________________ Score _________ Rating _________

The account balances of Abante Manufacturing Company as of November 30, 2023, is shown below

Dr. Cr.

Abante, Capital ₱ 15,000,000

Abante, Drawing ₱ 1,000,000

Accounts Payable 600,000

Accounts Receivable 890,000

Accumulated Depreciation - Office Building 202,500

Accumulated Depreciation - Factory Building 224,000

Accumulated Depreciation - Factory Equipment 180,000

Accumulated Depreciation - Factory Machinery 480,000

Accumulated Depreciation - Factory Vehicle 120,000

Accumulated Depreciation - Store Building

Accumulated Depreciation - Office Equipment 80,000

Accumulated Depreciation - Office Furniture and Fixtures 60,000

Accumulated Depreciation - Store Delivery Vehicle 200,000

Accumulated Depreciation - Store Equipment 48,000

Accumulated Depreciation - Store Furniture and Fixtures 20,000

Advertising Expense 72,000

Allowance for Bad Debts 49,000

Amortization of Patents 32,000

Building 2,250,000

Cash 650,000

Communication Expense - Factory 165,000

Communication Expense - Office 45,000

Communication Expense - Store 58,000

Depreciation Expense - Building 101,250

Depreciation Expense - Factory Building 112,000

Depreciation Expense - Factory Equipment 90,000

Depreciation Expense - Factory Machinery 240,000

Depreciation Expense - Factory Vehicle 60,000

Depreciation Expense - Store Building

Depreciation Expense - Office Equipment 40,000

Depreciation Expense - Office Furniture and Fixtures 30,000

Depreciation Expense - Store Delivery Vehicle 100,000

Depreciation Expense - Store Equipment 24,000

Depreciation Expense - Store Furniture and Fixtures 10,000

Direct Labor 1,560,000

Bad Debts Expense 49,000

Factory Building 3,000,000

Factory Equipment 2,000,000

Factory Machinery 4,000,000

Factory Superintendence 200,000

Factory Supplies Expense 44,800

Factory Vehicle 1,400,000

Finished Good Inventory, Jan. 1 450,000

Freight-in 64,000

Freight-out 90,000

Heat, Light and Power Expense - Factory 422,000

Heat, Light and Power Expense - Office 124,600

Heat, Light and Power Expense - Store 145,400

Indirect Labor 520,000

Indirect Materials 370,000

Insurance Expense - Factory 47,000

Interest Expense 75,000

Interest Income 24,000

Land 3,500,000

Loan Payable, 5% p.a., due 2025 800,000

Notes Payable, 5% p.a., due 2023 400,000

Notes Payable, 6% p.a., due 2024 500,000

Notes Receivable, 3% p.a., due 2023 600,000

Office Equipment 1,000,000

Office Furniture and Fixtures 500,000

Office Salaries Expense 650,000

Office Supplies 250,000

Patents 320,000
Prepaid Insurance - Office 49,000

Prepaid Insurance - Store 72,000

Property Taxes - Factory 73,000

Property Taxes - Office 51,200

Rent Income

Property Taxes - Store 65,800

Purchase Discounts 75,000

Purchase Returns and Allowances 100,000

Purchases 6,000,000

Raw Materials Inventory, Jan. 1 400,000

Repair Expense - Factory 76,800

Store Building

Repair Expense - Store 49,200

Sales 19,347,050

Sales Discounts 69,000

Sales Returns and Allowances 130,000

Salesmen's Commisions 665,000

Store Delivery Vehicle 1,600,000

Store Equipment 400,000

Store Furniture and Fixtures 300,000

Store Salaries Expense 690,000

Store Supplies 480,000

Unearned Rent Income 400,000

Water Expense - Factory 211,000

Water Expense - Office 73,500

Water Expense - Store 55,000

Work in Process Inventory, Jan. 1 368,000

Total ₱ 37,909,550 ₱ 37,909,550

The following transactions occurred during December 2023:

1 – Paid one-third (1/3) of the outstanding accounts payable as of November 30, 2023.
2 – Collected one-half of the outstanding accounts receivable as of November 30, 2023.
4 – Cash sales, ₱ 300,000. less 15%, less 5%.
6 – Purchased raw materials, ₱ 250,000. Terms: 2/15, 1/10, n/30, FOB Shipping Point,
Freight Prepaid by the seller, ₱ 5,000.
8 – Purchased raw materials, ₱ 450,000. Terms: 2/15, n/30, FOB Shipping Point.
10 – Received a credit memo for returned raw materials on the December 8 purchase, ₱ 50,000.
12 – Purchased factory supplies, ₱ 75,200. Terms: 1/10, n/30.
15 – Sold finished goods to Amber Company, ₱ 200,000. Terms: 3/10, n/30, FOB Destination Point,
Freight Prepaid, ₱ 5,000.
16 – Purchased raw materials, ₱ 250,000 cash.
 20 – Collected the December 15 account in full.
22 – Paid one-half of the outstanding December 8 account and was allowed a discount for the
partial payment.
23 – Paid the December 12 account in full.
25 – Purchased raw materials, ₱ 200,000. Terms: 2/15, n/30, FOB Shipping Point.
28 – Sales on account, ₱ 250,000. Terms: 2/15, n/30, FOB Shipping Point.
30 – Paid the December 25 account in full.
31 – Issued a credit memo for returned goods to the customer on account December 28, ₱ 50,000.

Additional Information:

On December 31, 2023, the following were made available:

a. Inventories on December 31, 2023 are as follows:

Raw Materials Inventory, Dec. 31 ₱430,000

Work in Process Inventory, Dec. 31 400,000

Finished Goods Inventory, Dec. 31 600,000

b. It was estimated that 5% of the outstanding accounts receivable will be
uncollectible.
c. Depreciation for the year:
Building 10%
Equipment 8%
Machinery 10%
Vehicle 6%
Furniture and Fixtures 5%
d. Accrued salaries for the month, store salaries - ₱ 75,000; office salaries, ₱ 45,000.

e. Accrued electricity expense: Factory - ₱ 50,000; Office - ₱ 50,000; Store - ₱ 50,000

f. Supplies unused: Office supplies - ₱ 100,000; Store supplies, ₱ 160,000.

g. Unearned rent income as of December 31, 2023, ₱ 150,000.

Required: Prepare the following financial statements:

1. Statement of Cost of Goods Manufactured

2. Income Statement
3. Statement of Changes in Owner’s Equity
4. Balance Sheet

Prepared By: Reviewed By:

LOU V. FOJA, CPA, MABA WENNIE D. FAJUTNAO, LPT, MABA

Associate Professor II Program Chairperson

Recommending Approval: Approved By:

RAY JOSEPH G. INOCENCIO, LPT, PhD
Dean