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For the year just ended, SANAMADALI Corporation reported total manufacturing costs of P3,600,000 and cost of goods sold of P3,750,000. For the past periods, the factory overhead had been about of the materials and 2/5 of the conversion costs. Raw materials on January 1 of P240,000 was 6/5 of the December 31 inventory, while work in process of P160,000 on January l increased by A at the year end. The finished goods inventory decreased by 1/3.
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