Voyager Inc. produces customized vans in a job order shop.

On November 1, the following balances

appear in the inventory records:

Finished goods P179,000

Work in process 308,000
Materials 83,000

The amount in Finished Goods represents P101,000 recorded for Van 175 and P78,000 recorded for Van
177. The work in process account represents the three vans in process, as follows:

Van 179 Van 180 Van 181

Factory overhead P75,000 P50,000 P25,000
Direct labor 60,000 40,000 20,000
Direct materials 26,000 7,000 5,000

The following transactions occurred during November:

(a) Purchased materials on account, P80,000.
(b) Requisitioned P60,000 of materials from inventory: P15,000 applied to Van 180, P25,000 to Van
181, and P16,000 to Van 182, a new order; the balance was for indirect materials.
(c) Recorded the liability for the payroll and the labor cost distribution in a single entry: total payroll,
P208,750. Of the payroll cost, 10% applied to Van 179, 20% to Van 180, 35% to Van 181, 30% to Van
182, and the remainder to indirect labor.
(d) Paid the payroll.
(e) Applied factory overhead at the rate of 150% of direct labor cost.
(f) Completed Vans 179 and 180.
(g) Sold Vans 175, 177, and 180 at 50% over manufacturing costs.