56.

Peter Senen Corp. uses backflush costing system to records its production transactions. During September 2019, Peter Senen produced 450,000 units and sold 447,000 units. The standard cost for each product is:

Direct Materials P2

Conversion costs 4

The company had no beginning inventories. The following transactions took place during the month of September Purchased P906,000 of raw material

Incurred P1,820,000 of conversion costs

Applied P1,825,000 of conversion cost to Raw and In process Inventory

Finished 450,000 units

Sold 447,000 units for P12.00/unit