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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?
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