I need help on the problem in the attached file, I am confused.

Manufacturing costs and other accounts of Toy Manufacturing Company appeared in its Dec 31, 2012 trial balance as follows:

Sales P 5,000,000

Raw Materials Purchases 1,200,000

Direct Labor 1,500,000

Office Supplied Used 7,850

Sales Allowances 25,000

Freight In 28,000

Factory Overhead 1,750,000

Advertising Expense 150,000

Delivery Expense 60,000

Inventories: End of 2012 End of 2011

Finished Goods P250,000 P320,000

Work In Process 78,500 65,000

Materials 95,000 88,000

Direction: Compute for the

• Total Manufacturing Costs
• Cost of goods manufactured
• Cost of goods sold
• Gross Profit
• Net Income