The production data for Department I for August 2015 are as follows:

WIP, August 1 (1/4 done as to conversion costs)

100,000 units

Started in August

740,000 units

Transferred Out during August

610,000 units

Spoiled Units

80,000 units

Costs of Beginning Work in Process:

Materials

P1,250,000

Conversion

P150,000

Current Costs:

Materials

P7,400,000

Conversion

P4,710,000

Unit Costs:

Materials

?

Conversion Costs

P6

Materials are added at the start of the process.

The Company uses the FIFO method of costing.

Inspection occurs, when production is 100% complete.

Normal spoilage is 11% of goods units transferred out during August.

What are the cost allocated to?

Next Department

In Process, End

Period Cost

a. 8,160,0000

3,426,400

1,280,000

b. 11,140,000

2,220,000

206,400

c. 9,860,000

3,239,600

205,000

d. 11,083,600

2,220,000

206,400