Lead Company has P945,000, Work in Process; P2,835,000, Finished Goods inventories; and P1,260,000, Raw Materials; at the close of business on December 31 of the current year. The balances of Chameleon's accounts as of December 31 are as follows:Cost of goods soldunadjusted - P2,520,000; Selling & administrative expenses - P950,000; Sales - P4,000,000; Manufacturing overhead control - P800,000; Manufacturing overhead applied - P754,000. The under/over applied overhead is considered material.Pretax income for the current year is:

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To calculate pretax income we need to determine the cost of goods sold COGS and the manu... View the full answer