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Ethel Company manufactures electric motors for electric fans. The company uses the JIT/Backflush Costing to manufacture the electric motor. The projected labor and factory overhead is P3,685,000; materials costs, P28 per unit. Planned production included 2,000 hours to produce 13,750 electric motors. Actual production for January was 800 units and electric motors shipped are 690 units.
Problem 1: The amount of production costs transferred to Cost of goods sold is
a. P184,920
b. P236,800
c. P214,400
d. P204,240
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