PSMO Company currently uses normal costing method in accumulating the cost of production. The following data were provided for the current year Raw Materials: Inventory, Jan. 1 Issuance to production Purchases on account Factory Labor: P600,000 3,600,000 4,350,000 Total Factory payroll 2,700,000 Factory overhead: Plant depreciation 200,000 Utilities 145,000 Repair and Maintenance 145,000 Indirect Materials 230,000 Indirect Labor 600,000 Other overhead costs 105,000 Work in process: Jan. 1 Dec. 31 720,000 650,000 How much is the total manufacturing costs assuming factory overhead is applied at 70% of direct labor costs P 6,940,000 P 3,370,000 P 7,010,000 P 186,000