Plastic Queen Manufacturing Company produces a plastic toy in a two-stage molding and finishing operation. The company uses the weighted average method of process costing. During June, the following data were recorded for the Finishing Department.

Units of beginning work in process inventory10,000

Percentage of completion of beg inventory25%

Cost of direct materials in beg WIPP0

Units started70,000

Units completed50,000

Units in ending WIP inventory20,000

Percentage of completion of ending units95%

Spoiled units10,000

Costs added during current period:

Direct materialsP655,200

Direct laborP635,600

Manufacturing overheadP616,000

WIP, beg

Transferred In costsP82,900

Conversion costsP42,000

Costs of units transferred in during current periodP647,500

Conversion costs are incurred evenly during the process. Direct materials costs are incurred when production is 90% complete. The inspection point is at 80% stage of production. Normal spoilage is 10% of all good units that pass inspection.

What is the cost of normal lost units?

a.

P150,950

b.

P157,990

c.

P145,500

d.

P155,990

Conversion costs are incurred evenly during the process. Direct materials costs are incurred when production is 90% complete. The inspection point is at 80% stage of production. Normal spoilage is 10% of all good units that pass inspection.What is the cost assigned to units in ending work in process?

a.

P734,140

b.

P750,150

c.

P835,140

d.

P689,000