Nakahiga, Inc., manufactures matress that passes through two processes: Cutting and Assembly. All manufacturing costs are added uniformly in the Cutting Department. Information for the Cutting Department for December follows:

Work in process, December 1:

Units (30% Complete) 5,000 Units

Direct materials P10,000

Direct labor P4,000

Overhead P1,000

During December, 60,000 units were started but only 62,000 units were completed and transferred to Assembly. The following costs were incurred by the Cutting Department during December:

Direct materials P150,000

Direct labor 40,000

Overhead 10,000

There were 3,000 units remaining in the Cutting Department on December 30 that were 30 percent complete.

On January 1, the cutting Department continued its production for January were it started 57,000 new units. On January 31, 10,000 WIP units were in ending inventory, 50% complete.

Costs added by Cutting during January included

Direct materials P120,000

Direct labor P40,000

Overhead P8,000

Prepare a cost of production report using the weighted average and FIFO methods for Cutting for December and January 2020.