Summit Company provide the cost data for the month of January

Inventories: January 1 January 31

Direct materials P30, 000 P40, 000

WIP P15, 000 P20, 000

Finished Goods P65, 000 P50, 000

Factory overhead applied P150, 000

Cost of goods manufactured P515, 000

Direct materials used P190, 000

Actual FOH P144, 000

Required:

1. How much is the Adjusted COGS if under or over-applied overhead were allocated to inventories and COGS?

2. How much is the Adjusted COGS if under or over-applied overhead were closed to COGS?