Manila Products, Inc., a small manufacturing company, produces a highly flammable cleaning fluid. On May 31, 2021, the company had a fire which completely destroyed the processing building and the work in process inventory; some of the equipment was saved.

After the fire, a physical inventory was taken. The materials were valued at P30,000 the finished goods at P60,000, and supplies at P5,000.

The inventories on January 1, 2021, consisted of:

Question:

1. What is the value of Work-In Process inventory destroyed by fire?

2. USING the high-low method, what is the variable cost per unit. Refer to the image below

3. Under high and low what is the amount of fixed cost

4. Using least square method, determine the variable cost per unit, round off to two decimal points

5. Using least square How much is the fixed cost

Finished goods Work in process Materials Supplies Total P70,000 50,000 15,000 2,000 P137,000 A review of the accounts showed that the sales and gross profit for the last five years were: SALES GROSS PROFIT 2016 P300,000 P 86,200 2017 320,000 102,400 2018 250,000 108,900 2019 280,000 62,500 2020 84,000 The sales for the first five months of 19F were P150,000; materials purchases were P50,000; freight on purchases was P5,000; direct labor for the first five months was P40,000. For the past five years, factory overhead was 50% of direct lahar roet The following machine hours and utility cost information is available: MONTH MACHINE HOURS UTILITY COST P2 3 1 3 4 January February March April May June July August September October 7,260 8,850 4,800 9,000 11,000 4,900 4,600 8,900 5,900 5,500 1 2 3 2 2