Reference no: EM132667517

Last month, Babe Company placed P60,000 of materials into production. The printing department used 8,000 labor hours at P5.60 per hour and the binding department used 4,600 hours at P6.00 per hour. Factory overhead is applied at a rate of P6.00 per labor hour in the printing department and P8.00 per labor in the binding department. Babe's inventory accounts show the following balances:

                                       Beginning               Ending

Finished Goods              P22,000           P17,000

Work in Process            P15,000           P17,600

Materials                     P20,000           P18,000

Problem 1: What is the cost of goods sold?