Company D submits the following data for May 2013

Direct labor cost P80, 000

Purchases P100, 000

Factory overhead Applied at 150% of direct labor cost

Inventories May 1 May 31

Finished goods P45, 000 P24, 000

Work in Process P25, 800 P18, 000

Materials P22, 000 P25, 000

1. How much is the adjusted COGS after closing the over or under applied overhead to the monthly cost of goods sold?

Company D submits the following data for May 2013

Direct labor cost P80, 000

Purchases P100, 000

Factory overhead Applied at 150% of direct labor cost

Inventories May 1 May 31

Finished goods P45, 000 P24, 000

Work in Process P25, 800 P18, 000

Materials P22, 000 P25, 000

Actual factory overhead amounts to P80,000.

2. How much is the adjustment posted on the Cost of Goods sold Account? just put the amount

Kindly provide explanation, thanks!