Reference no: EM132879383

Meyer Corp. reports operating expenses in two categories: (1) selling and (2) general and administrative. The adjusted trial balance at December 31, 2018, included the following expense accounts:

Accounting and legal fees P 140,000
Advertising 120,000
Freight-out 75,000
Interest 60,000
Loss on sale of long-term investments 30,000
Officers' salaries 180,000
Rent for office space 180,000
Sales salaries and commissions 110,000

One-half of the rented premises is occupied by the sales department.

Problem 1. How much of the expenses listed above should be included in Meyer's selling expenses for 2018?

a. P230,000.
b. P305,000.
c. P320,000.
d. P395,000.

Problem 2. How much of the expenses listed above should be included in Meyer's general and administrative expenses for 2018?

a. P410,000.
b. P440,000.
c. P470,000.
d. P500,000.