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Sprint Company provided the following information for the month of July 2015:
Factory overhead incurred P 340,600
Applied factory overhead
Cost of goods sold P 217,000
Ending work in process inventory 62,000
Ending finished goods inventory 31,000
P 310,000
Problem 1: At what amount should the cost of goods sold be adjusted for the under- or overapplied factory overhead?
Option 1: P 21,420 debit
Option 2: P 21,420 credit
Option 3: P 30,600 debit
Option 4: P 30,600 credit
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