SHARLENE INDUSTRIES, INC. records incoming materials at invoice price less cash discounts, plus applied receiving and handling costs. For Product Zingo, the following data are available: Freight in and cartage in........ Purchasing Department cost......... Receiving Department cost......... Storage and handling.......... Budgeted for the month P5,000............ .... 9,200............ ....... 7,800............ .... 8,400........... Actual cost for the month .P5,160 ..... 9,000 ..... 8,400 7,600 Testing, spoilage and rejects.................. 5,600............ 6,240 Totals........... ...... P36,000........... ...P36,400 The purchasing budget shows estimated net purchases of P288,000 for the month. Actual invoices net of discounts total P297,000 for the month. issued All costs incidental to materials procurement and handling until they are are charged to the materials account by GRAY MFG. COMPANY at a rate predetermined for each of the departments involved. For 2018, the estimated departmental costs are given: Purchasing Department......... Receiving & Inspection Department.. Materials Department.. Accounting Department.. ......P350,000 249,000 166,000 590,000* *20% is estimated to be related to the processing of payments for materials. Purchases for 2018 were estimated to amount to P10,000,000 for more or less 8,300,000 units to be ordered 50 times. Actual purchases for 2018 amounted to P11,200,000 for a total of 8,000,000 in 52 orders. Costs incurred by the four(4) departments were as follows: Purchasing Department.... P360,000 Receiving & Inspection Department.... 256,000 Materials Department.... .. 156,000 580,000** Accounting Department.. **20% is estimated to be related to the processing of payment for materials.