Davao Company employs normal costing of its production. The following data are provided during the current year Net purchases of Raw materials during the year 1,000,000.00 Total Labor Cost during the year 1,600,000.00 Depreciation of factory assets during the year 200,000.00 Utilities on the factory during the year Increase in Raw Materials Inventory 200,000.00 Decrease in Work in Process Inventory 600,000.00 Decrease in Finished Goods Inventory 600,000.00 The entity uses a single account for its direct materials and indirect materials. Indirect Material used is 1/4 of Direct Materials Used The indirect labor cost is 1/8 of direct labor costs The applied overhead rate is 80% of direct labor costs Any over and under application of overhead is considered material