Mental Health Corporation has manufactured 100,000 units of compound X in 2021 at the following costs. Labor of P242,500 of which 93% represents direct labor. Materials of P182,500 of which 90% represents direct materials. Opening work in process is P88,125. Closing work in process inventory is P67,500. Overhead is applied at 125% of direct labor cost. The cost of goods manufactured is *   a. P 671,150 b. P 692,306 c. P 651,036 d. P 727,531

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Mental Health Corporation has manufactured 100,000 units of compound X in 2021 at the following costs. Labor of P242,500 of which 93% represents direct labor. Materials of P182,500 of which 90% represents direct materials. Opening work in process is P88,125. Closing work in process inventory is P67,500. Overhead is applied at 125% of direct labor cost. The cost of goods manufactured is *

 

a. P 671,150

b. P 692,306

c. P 651,036

d. P 727,531

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