CPA Processing Co. had the following inventories on August of the current year: Finished Goods Inventory Work in Process Inventory Materials Inventory P410,000 35,000 P 82,000 Details of the above mentioned three inventories are: Finished Goods Inventory: Work in Process Inventory: Job 101 Job 102 Job 103 P 9,000 Job 104 17,000 Total Job 105 Total 14,000 P 40,000 P 140,000 135,000 P 275,000 The following information pertains to August operations: 1. Materials Purchased P100,000, on account P55,000 and balance in cash. 2. Materials returned to vendors due to defects and was not replaced, P7,000 from cash and P3,000 on account. 3. Materials issued for production, P50,000. Of this amount, P10,000 was for indirect materials; the difference was distributed as follows: Job 103, P11,000 Job 104, P9,000 Job 105, P7,000 Job 106, P13,000 4. Materials returned to warehouse from the factory, P10,000, of which P3,000 was for indirect materials, the balance from Job 405,60% and Job 404, 40%. 5. The total payroll was P170,000. It was distributed as follows: 6,500 for store attendant, 10,000 for administrative staff and the balance represents indirect labor and direct labor allocated as follows: Job 103-12,000 direct labor hours at P3.00 Job 104-14,000 direct labor hours at P4.00 Job 105-7,000 direct labor hours at P2.00 Job 106-9,000 direct labor hours at P5.00 Indirect Labor Payroll Deductions are as follows: Withholding Taxes P 8,000 SSS Premiums 5,500 Phil Health Contribution 5,000 Pag-ibig Funds 4,500 6. Employer payroll expense is as follows: Factory SSS Premiums 3,400 Phil Health Contributions 2,500 Pag-ibig Funds 3,000 Selling 2,400 2,000 1,000 General 1,600 1,800 900 7. Factory overhead, other than any previously mentioned, amounted to P25,000. Included in this figure were P12,000 for depreciation of factory building and P15,000 for factory equipment, and P1,000 for expired insurance on the factory. The remaining overhead was unpaid at the end of August.