Reference no: EM132669094

The following events took place at the Rounin Company over the past year.

Incurred direct labor costs of P47, 000
Purchased manufacturing equipment for P75, 000
Purchased direct materials for P176, 000
Incurred manufacturing overhead of P81, 000
Transferred 73% of the direct materials to work in process
Completed work on 85% of the goods in work in process
Sold 90% of the completed goods
Marketing and administrative costs were P85, 000
Sales amounted to P400, 000

There were no beginning balances in any of the inventory accounts. Costs are assigned equally across all work in process

Based on the above data:

Problem 1. What is the cost of goods sold?

Problem 2. What is the company's net income or net loss?

Problem 3. How much is the value of the ending finished goods inventory?