1. A. Purchased raw materials from supplier amounting to P 40,000 on account.

B. During the month, raw materials costing 30,000 were issued to production. (includes indirect materials of 2,000)

C. Payroll of production personneltotaled 50,000.

D. Payroll of selling and admin personnelis 10,000

E. Applied all the labor cost to production.

F. Incurred other overhead-utility cost of P 35,000; Rental cost of 20,000 (50% is allocated to production plant)

G. Applied overhead cost to production Is 67,500. Overhead rate is 150% of direct labor cost. Any under or over applied overhead is immaterial.

H. Beginning WIP is 4,000 and Ending Work in Process is P 1,000

I. Beginning Finished Goods is 12,000 and Ending FG inventories; costing 45,000.

J. Gross Sales totaled 200,000. Sales return is 6,000.

WHAT IS THE GROSS PROFIT? using actual costing