Problem 6-3: Manufacturing Overhead Entries. The Perlas Company assembles and sells one product. The costs per unit are: materials, P15; labor, P17. Production for year 2014 is estimated to be 20,000 units. Estimated manufacturing overhead is: Indirect labor Indirect materials Depreciation Light and power Others P22,000 16,000 7,000 5,000 10,000 Completed production for year 2014 was 18,000 units and actual manufacturing overhead cost was P56,500. There are no beginning or ending work in process inventories. Required: Prepare (a) The journal entries for materials, labor and overhead. (b) The entry to close the over or underapplied manufacturing overhead.