1. BSA Company manufactures product A with the following unit cost: materials, P15 and labor P25. Total conversion cost per unit is 80% of the total product cost. In January, 159,000 were produced and 138,000 units were sold at P120 each, what is the amount of gross profit?

2. BSA Company buys and sells product A at P25 per piece. At the beginning of the month, there were 10,000 units at P13 each. Purchases at end of the 1st week were 12,000 units at P14 each; 2nd week at 15,000 units at P15 each; and 3rd week 16,000 units at P16 each. At the end of the month, 8,000 units on hand were counted. Which of the following statements is correct?

a. Average Gross profit per unit under FIFO method is greater by P10.30

b. Average Gross profit per unit under Simple Average method is P10.30.

c. Cost of Sales under FIFO method is P661,415.

d. Ending inventory under simple average method is P128,000.