A review of the records of Milgrim, Inc., a new company, disclosed the following year-end information:

• Manufacturing Overhead account: Contained debits of P872,000, which included P20,000 of sales commissions.
• Work-in-Process Inventory account: Contained charges for the overhead of P875,000.
• Cost-of-Goods-Sold account: Contained a year-end debit balance of P3,680,000.This amount was computed prior to any year-end adjustment for under-or overapplied overhead.

Milgrim applies manufacturing overhead to production by using a predetermined rate of P20 per machine hour.The budgeted overhead for the period was anticipated to be P900,000.

Required:

1. Compute the adjusted cost-of-goods-sold figure that should be disclosed on the company's income statement.

2. How many machine hours did Milgrim actually work during the year?

Work in process of Sumikat Corp.on May 1, 2016 is given as follows:

• Per general ledger22,250
• Per cost sheets:Job 451Job 452
• Direct materials6,0008,000
• Direct Labor3,0002,500
• Factory costs for May 2016Job 451Job 452Job 453Job 454
• Direct materials3,0002,0006,0004,500
• Direct labor1,0001,5002,600 2,000

Factory overhead is charged to production based on direct labor costs. Jobs 451 and 452 are completed during the month.

1. What is the factory overhead rate?

2.Cost of goods manufactured for the month must equal to?

3.Work in process as of May 31 mustbe?