Solve and show solution completely. Explain the answer.

Manufacturing overhead 1,000 Production Units Cost Production cost per unit 1,000 P476,000 Mat - 300.00 DL 96.00 OH 80,00 Total 476.00 Defective job - rework (no effect on the cost of the job Good units 1,010 P476,000 Assume the 50 units are defective units due to employee's fault which is abormal. The cost of reworking the defective units is charged to Loss from Spoilage account which is a period cost. Loss from spoilage 2,200 Accrued Payroll 1,200 Manufacturing overhead 1,000 Activities/Assessments: Answer the following problems: a. J.A.N., Inc. uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of P3,500 and two jobs in process, Job No. 101 P2,000 and Job 102 P1,500. During May, a summary of source documents reveals the followingJob Materials Requisition Labor Time Number Slips Tickets 101 P 2,500.00 P 2,900.00 102 P3,500.00 P3,000.00 103 P4,600.00 P10,600.00 P5,800.00 P11, 700.00 General use P800.00 P1,200.00 Total P 11,400.00 P12,900.00 J.A.N. Company applies as manufacturing overhead to jobs at an overhead rate of 80% of direct labor cost. Jon 101 is completed during the month. Prepare the summary journal entries to record the following: a. The requisition slips The time tickets The completion of Job No. 101 b. Hercules Company begins operation on April1. Information from job cost sheets shows the following: Job Manufacturing Cost Assigned Number April May June Month Completed 101 P5, 200.00 P5, 400.00 May 102 P 4, 700.00 P3, 800.00 P2,000.00 June 103 P 1, 200.00 April 104 P5,800.00 P4,200.00 June 105 P5,200.00 P3,800.00 Not yet complete Each job was sold for 25% above its cost in the month following completion. Compute for: 1. The balance of Work in Process Inventory at the end of each month. 2 . The balance of the Finished Goods Inventory at the end of each month. 3. The gross profit for May, June and July. References: Cost Accounting and Control by Gloria A. Rante Cost Accounting and Control by Norma D. De Leon, Ellery D. De Leon and Guillermo M. De Leon, Jr