PROBLEM 1 THE COMPARATIVE INVENTORY DATA FOR FJPE MANUFACTURING CORP. FOR THE YEAR ENDED DEC 31, 2019 IS SUMMARZED BELOW: MATERIALS CONTROL JANUARY 1 495,000 WORK IN PROCESS- MATS 138,000 WORK IN PROCESS-LABOR 127,000 WORK IN PROCESS-OVERHEAD 184,000 FINISHED GOODS CONTROL 525,000 DECEMBER 31 513,000 132,000 136,000 161,000 487,000 DURING THE YEAR 2016, THE CORPORATION COMPLETED, AMONG OTHERS, THE FOLLOWING TRANSACTIONS: A. PURCHASES, ALL ON ACCOUNT, DIRECT MATERIALS, P2,100,000; INDIRECT MATERIALS, 400,000 B. THE TOTAL MATERIALS REQUISITIONED FOR USE DURING THE YEAR INCLUDED 360,000 FOR INDIRECT MATERIALS, P42,000 FOR SHIPPING OF FINISHED GOODS DELIVERIES, AND 35,000 FOR GEN. OFFICE. C. THE PAYROLL FOR THE YEAR WAS BROKEN DOWN AS FOLLOWS: DIRECT LABOR, P1,650,000, INDIRECT LABOR, P550,000; SALES SALARIES, P840,000, AND OFFICE SALARIES, P460,000. D. THE PAYROLL WAS VOUCHERED AND ANALYSIS DISCLOSED THE FOLLOWING DETAILS: GROSS W/H TAX SSS MEDICARE HDMF D LABOR 1,650,000 80,000 40,000 12,000 38,000 IN-LABOR 550,000 40,000 12,500 3,000 12,000 SALES SAL. 840,000 60,000 20,000 8,000 22,000 OFFICE SAL 460,000 50,000 11,000 5,000 14,000 E. AND HDMF PREMIUMS WAS APPROPRIATELY RECORDED. (ASSUME THE SAME AMOUNT OF SSS, MEDICARE PREMIUMS, HDMF WAS CONTRIBUTED BY THE EMPLOYER) F. OTHER MANUFACTURING EXPENSES VOUCHERED AMOUNTED TO P920,000 AND DEPRECIATION CHARGES WERE 250,000 ON PLANT ASSETS, P120,000 ON DELIVERY TRUCKS AND P80,000 ON OFFICE EQUIPMENT. G. MANUFACTURING EXPENSES WERE APPLIED TO PRODUCTION AT PREDETERMINED OVERHEAD RATE EQUAL TO 130% OF DIRECT LABOR COST H. COMPLETED GOODS WERE TRANSFERRED TO THE FINISHED GOODS WAREHOUSE. I. ALL SALES ARE MADE ON TERMS 2/10, N/30; BILLING PRICE IS AT 150% OF COST. J. AT THE END OF THE YEAR, ANY OVERAPPLIED OR UNDERAPPLIED MANUFACTURING EXPENSES IS TREATED AS AN ADJUSTMENT TO THE COST OF GOODS SOLD.