PROBLEM 1 The Ram Manufacturing Company produced P100, 000 units during the year ended December 31, 2009. It incurred the following costs for the year Materials Labor Factory Overhead WIP-January 1 WIP December 31 P75, 000 (10% is indirect materials) P97, 000 (7% is indirect labor) 125% of direct labor cost P25,500 P27,000 Required: How much is the Company's cost of goods manufactured? Problem 2 Donna Company submits the following data for May 2013 Direct labor cost P80,000 Purchases P100,000 Factory overhead Applied at 150% of direct labor cost Inventories May 1 May 31 Finished goods P45,000 P24,000 Work in Process Materials P25, 800 P22,000 P18,000 P25, 000 Required: How much is the Company's Cost of goods sold?