On 20xx,Ballpoint Maker Inc. purchased direct raw material amounting to P417,000, of which P412,500 worth of materials was issued to production. Total direct labor costs incurred was P180,000. Overhead is being applied for 110% of direct labor cost. Actual overhead costs amounted to P378,000. Over or underapplied overhead, if any is considered immaterial to the company. (NOTE: All transactions are already paid)

Shown below are the balances of the company's inventories:

Raw material Work in process Finished goods January 1 inventory balances P 45,000 58,500 63,000 End of Year inventory balances P 49,500 64,350 69,300