BB Inc, manufactures leather bags with 3 zippertype pockets. The Company outsources the Zippers at P8 per unit. Each bag requires 5 direct labor hours to produce at a rate of P10 per hour. Budgeted sales of bags for the rst quarter of the year and the rst month of the following quarter are as follows: January 900 units February 1,000 units March 1,500 units April 1,800 units Inventory data are as follows: January 1: Leather bags, 360 Zipper, 1620 End of each month Leather bags 40% of the following month's budgeted sales. Zipper 60% of the following month's production requirement