Applied auditing problem

You are engaged in the audit of the December 31 financial statements of Spirit Corporation, a manufacturer of digital watches. You are attempting to verify the ending WIP and finished goods which were recorded on Spirit's books as follows: UNITS COST WIP (50% complete as to conversion costs) 300,000 P 660,960.00 Finished goods 200,000 1,009,800.00 Materials are added to production at the beginning of the manufacturing process and overhead is applied to each product at a rate of 60% of direct labor costs. There was no finished goods inventory on January 1. A review of Spirit's inventory cost records disclosed the following information: Cost (in thousands) Units Materials Labor WIP, 1/1 (80% complete as to conversion costs) 200 P 200.00 P 315.00 Units started in production 1,000 Material P 1,300.00 Labor P 1,995.00 Units completed 900 25 The equivalent units for labor: FIFO Weighted Average 1,050,000 890,000 1,050,000 1,050,000 890,000 1,050,000 890,000 890,000 26 What is the total cost for overhead? FIFO Weighted Average A PI,197,000 P1,386,000 B P1,386,000 P1,197,000 C P1,197,000 P1,197,000 D P1,386,000 P1,386,000 27 What is the cost per equivalent unit for labor? FIFO Weighted Average A P2.20 P2.24 B P2.24 P2.20 C P2.20 P2.20 D P2.24 P2.24 28 What is the total cost for the ending inventory of finished goods using the weighted average method? A P869,000 B P954,000 C P900,000 D P786,000