1. For this numeric question, 20 points.

TQM Manufacturing Company manufactures custom cabinets for modular and prefabricated housing companies. During the current year, an order of 1,000 customized cabinets was begun and assigned job no. 3635. Custom jobs are marked at 50% above cost. The total production costs of the 1,000 cabinets are as follows: Direct materials P292,000 Direct labor (3.000 H @ P52) Factory overhead, 45.00 per DL hours including allowance for spoilage of P2.80) Upon inspection, 100 of the cabinets were found to have defects. Cost of rework per unit include materials, P40 and hour. Overhead is applied on the defective jobs at the same rate. 11. The total costs as basis for billing the customer is: Below are balances and information taken from the records of Bulls Company for the last quarter of the current year: Oct. 1 Inventories: P134,000 Raw Materials 354,000 Work in process 594,600 Finished goods 4,200,000 Dr Manufacturing overhead Cost of goods sold Supplementary data: 4,600,000 Cr. 10,800,000 a. During the quarter, purchases of raw materials totaled P1,093,400 while physical count of raw materials revealed that P250,000 were unused. b. 39,800 direct labor hours were utilized distributed as follows: 25,000 hours worked on regular time at regular rate of P42.50 per hour. 14,000 hours worked at regular rate plus 10% special night premium 800 hours worked on overtime at regular rate plus 30% overtime premium c. Overhead is charged to production at 80% of direct labor costs. d. Actual overhead incurred was P1,420,000 including indirect materials of P12,000 but excluding special night and overtime premium. Overhead variance is closed to all accounts with overhead elements at the end of the year. e. At the end of the year, records show that work in process Increased P80,000 while Finished Goods decreased by P150,000 12. The total factory costs for the quarter amount to: 13. The costs of goods manufactured amount to Occasion Shop, Inc., keeps accounting and cost records on a personal computer. During the month of January, data were lost as a result of errors made by a new operator. Fortunately, some data were retrieved and are set forth as follows: a. The debit balance in the payroll account was P130,000. This balance included P20,000 in indirect labor that was charged to the factory overhead. b. The debit balance in the factory overhead account totalled P166,000 while the total credit totalled P165,000 c. work in process account showed a January 1 balance of P 91,000. Materials requisitioned and charged to work in process during the period amounted to P 98,000. The balance in work in process on January 31, was P82,000. d. The finished goods balance at January 1 was P48,000. e. Cost of goods sold had a debit balance of P 389,000. This amount did not include under- applied factory overhead. 14. The balance of Cost of Sales after closing the overhead variance is