The production data for Department 1 for August 2019 are as follows:

Actual units

W/P, August 1 (,1/4 done as to conversion cost)40,000

Started in August296,000

Transferred out during August244,000

Lost Units32,000

Cost of Beginning W/P:

MaterialsP500,000

Conversion costs60,000

Current Costs:

MaterialsP2,960,000

Conversion costs1,884,000

Unit costs:

MaterialsP10

Conversion costs6

Materials are added at the start of the process while Conversion costs are added evenly during the process.

The company uses the FIFO method of costing

Inspection occurs when the production is 100% complete

Normal loss is 11% of good units transferred out during August.40000

71. The period cost is:

b. P82,500

c. P82,000

d. P82,560

a. P512,000