Purchases on account 4,500,000 Issuance to production 3,600,000 Factory overhead: Depreciation 220,000 Maintenance 125,000 Utilities 145,000 Indirect materials 230,000 Miscellaneous overhead 105,000 Indirect labor 600,000 Work in process: Beginning inventory 720,000 Ending inventory 650,000 Compute for the following: a) Total factory costs assuming factory overhead is applied at 70% of direct labor costs. b) Cost of sales assuming finished goods inventory is increased by P186,000Problem 1-7. Jansport Manufacturing Company currently uses normal costing method in accumulating the cost of production. ? The following data were provided for the current year: Factory Labor: Total Factory payroll P2,700,000 Raw Materials: Inventory, Jan 1 450,000