8. Midwest Ceramics produces custom-made floor tiles. During April 2019, the following information was obtained relating to operations and production: 1. Direct material purchased on account, P92,000. 2. Direct materials issued to jobs, P81,900. 3. Direct labor hours incurred, 1,700. All direct factory employees were paid P15 per hour. 4. Actual factory overhead costs incurred for the month totaled P34,350. This overhead consisted of P9,000 of supervisor's salaries, P10,750 of depreciation charges, P3,600 of insurance, P6,250 of indirect material, and P4,750 of utilities. Salaries, insurance, and utilities were paid in cash, and indirect material was taken from supplies inventory. 5. Overhead is applied to production at the rate of P20 per direct labor hour. Beginning balances of RMI and WIPI were P2,150 and P11,200, respectively. Ending WIPI was P2,350. Required: a. Prepare journal entries for transactions 1 - 5. b. Determine the balance in RMI at the end of the month. c. Determine the cost of goods completed during April. If 5,000 similar units were completed, what was the cost per unit? Solution: