The companies inventory data for JPE Manufacturing Corporation for the year ended December 31, 2016 is summarized below:

e. The corporation's share of the payroll taxes, SSS contribution, Medicare premium, HDMF premiums and employer compensation contribution was appropriately recorded. (Assume the same amount of SSS, Medicare and HDMF premiums was contributed by the employer)

f. Other manufacturing expenses vouchered amounted to P920,000 and depreciation charges were P250,000 on plant assets, P120,000 on delivery trucks and P80,000 on office equipment

g. Manufacturing expenses were applied to production at predetermined rate equal to 130% of direct costs

h. Completed goods were transferred to the finished goods warehouse

i. All sales are made on terms 2/10, n/30; billing price is at 150% of cost

j. At the end of the year, any overapplied or underapplied manufacturing expenses is treated as an adjustment to the cost of goods sold

Required:

1. Prepare entries in general journal form, to record the above transaction of JPE Manufacturing Corporation for the year 2016
2. Prepare the statement of cost of goods manufactures and sold for the year ended December 31, 2016
3. Determine the following amounts:

a. Prime Cost

b. Conversion Cost

c. Product Cost

d. Period Cost

Gross WHT SSS Medicare HDMF ECC Direct Labor 1,650,000 80,000 40,000 12,000 38,000 6,000 Indirect Labor 550,000 40,000 12,500 3,000 12,000 1,500 Sales Salaries 840,000 60,000 20,000 8,000 22,000 4,000 Office Salaries 460,000 50,000 11,000 5,000 14,000 2,500