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Trisha Doll Company is a leading toy manufacturing company and has a single product with April $2023$ sales of

$10,200$ units at a selling price of $$65\mathrm{.}50$ per doll. The functional currency of the company is the US $ because all

sales transactions and purchases are done abroad. Management has deemed that sales returns and allowances

have been standard at $5\%$ of gross sales and that retailers $($customers$)$ avail of a standard $2\%$ sales discount on

gross sales. Delivery expenses, considered as selling expenses, are $1\%$ of gross sales.

Inventory data reveals that at the beginning of April, there were Finished Goods of $$63,000$; Work in Process of

$$12,000$; and Raw Materials of $$18,000.$ At the end of April, physical count and valuation reveals Finished Goods

of $$35,000,$ Work in Process of $$10,000,$ and Raw Materials of $$12,000.$ Total invoices show Raw Materials

Purchases $($treated as all direct materials$)$ amounting to $$98,000.$

The rented factory located in an ecozone in Cebu, Philippines shares facilities with its showroom store and

administrative office. Rental cost is $$50,000$ and its corresponding insurance costs $$25,000.$ Management thought

of a reasonable basis to allocate rental cost and insurance costs using the following ratio: $50\%$ factory, $30\%$

administrative offices, and $20\%$ showroom sales. Utilities, on the other hand, has separate electric and water

meters. Utilities Expense for general and administrative expenses amount to $$3,000$; factory utilities amount to

$$10,000$; store utilities $$2,000.$

The company bookkeeper detailed the following costs and expenses yet unclassified for income statement

preparation purposes:

Labor and compensation were taken from the Payroll Department. Total direct labor costs is $$240,000,$ Indirect

Labor $$6,000,$ Factory Supervisor's Salary $$5,000,$ Executive Compensation $$15,000,$ Salary of Administrative

Employees $$35,000,$ Salary of Sales Persons $$18,000.$ Additional compensation are given to sales persons in the

form of commissions of $5\%$ of Net Sales.

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