The XYZ Co. incurred the following cost for the month of June 2019. XYZ accrues payroll monthly and pays payroll on the fifth of the following month.

Direct manufacturing labor cost P80,000

Indirect manufacturing labor cost 10,000

Other indirect manufacturing cost paid during the month 40,000

In addition, the following employer payroll taxes are also accrued:

SSS premiums 2,000

Philhealth premiums 1,500

Pag-ibig contributions 1,500

Month-end data for adjustment:

Depreciation of factory equipment 6,000

Factory property taxes 1,000

Factory insurance expired 2,500

Factory supplies used 1,200

Required:

1. Journal entries (for labor and overhead) including adjustments
2. Compute the conversion cost.
3. If overhead is applied at a rate of 120 percent of direct labor cost, prepare journal entry to record application of overhead to production and to close over/under-applied factory overhead for the month to cost of goods sold account.