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Problem 1: Marithe Company uses FIFO method in its process costing system. The conversion cost for the month of April is P5.00 per EUP and the material cost is P2.90 per EUP. At the beginning of the month, 1,500 units were in process, that were 100% complete with respect to materials and 30% complete with respect to conversion, with a total cost at that point of P3,600. If these units are fully complete by the end of the month, their total cost will be:
a. P5,250
b. P5,850
c. P12,000
d. None of the above
e. P8,850
Hans purchased a new passenger automobile on August 17, 2009, for $40,000. During the year the car was used 40% for business and 60% for personal use. Determine his cost recovery deduction for the car for 2009.
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