State Chemical Company manufactures several products in three departments: In Department 1, the raw materials amanic acid and bonyl hydroxide are used to produce Amanyl, Bonamyl, and Am-salt. Amanyl is sold to others who use it as a raw material in the manufacture of stimulants. Bonamyl is not salable without further processing. Although Am-salt is a commercial product for which there is a ready market, the company does not sell this product preferring to submit it to further processing. In Department 2, Bonamyl is processed into the marketable product, Bonamyl-X. The relationship between Bonamyl used and Bonamyl-X produced has remained constant for several months. In Department 3, Am-salt and the raw material colb are used to produce Colbanyl, a liquid propellant. As an inevitable part of this process, Demanyl is also produced. Demanyl was discarded as scrap until discovery or its usefulness as a catalyst in the manufacture of glue. For two years, State Chemical has been able to sell all of its Demanyl production. In its financial statements, the company states inventory at the lower of cost (on first-in, first-out basis) or market. Unit costs of the items most recently produced must therefore be computed. The cost allocated to Demanyl is computed so that after allowing P0.08 per pound for packaging and selling costs, no profit or loss will be recognized on sale of this product. The following data on October production and inventories are available: Raw materials Pounds used Total cost Amanic acid 12,600 P11,340 Bonyl hydroxide 18,200 12,740 Colb 11,200 4,480 Conversion Costs Department 1 P67,200 Department 2 6,612 Department 3 44,800 Inventories in Pounds Pounds Produced Sept. 30 Oct. 31 Sales Price/pound Amanyl 7,200 P13.30 Bonamyl 5,600 420 220 Am-salt 15,200 800 1,200 P12.60 Bonamyl-X 5,510 P 8.40 Colbanyl 2,800 P86.00 Demanyl 19,600 P 1.08 REQUIREMENTS: Prepare schedules for the following items for October, with supporting computations prepared in good form and answers rounded to the nearest cent. 1. Cost per pound of Amanyl, Bonamyl and Am-salt produced, using the approximate NRV method. 2. Cost per pound of Amanyl, Bonamyl, and Am-salt produced, using the average unit cost method (physical units). 3. Cost per pound of Colbanyl produced, assuming that the cost per pound of Am-salt produced was P6.90 in September and P7.10 in October