The ABC Company manufactures special purpose machines to order. Because the products are tailored for the customers' preference, completed units are automatically sold to gain 20% profit on billed price. On 1/1/2017 there were two jobs in process, 405 and 406. The following costs were applied to them in 2016:

Job 405 Job 406

Direct material P 5,000 P 8,000

Direct labor 4,000 3,000

Overhead 4,400 3,300

Total P13,400 P14,300

During January of 2017, the following transactions took place:

• Raw material costing P40,000 was purchased on account.
• Jobs #407, 408, and 409 were started and the following costs were applied to them:

	Job 407	Job 408	Job 409
Direct materials	P3,000	P10,000	P 7,000
Direct labor	5,000	6,000	4,000

• Job P405 and Job #406 were completed after incurring additional direct labor costs of P2,000 and P4,000, respectively. Job 408 is also completed on January.
• Wages paid to production employees during January totaled P25,000.
• Depreciation of factory equipment for the month of January totaled P10,000.
• Utilities bills (where 30% of the utilities are related to office, while the remaining can be attributed to the factory) in the amount of P10,000 were paid for December 2016 operations.
• Supplies costing P2,000 were used. Only 40% is used by the factory, while the 60% is used for promotional activities (flyers, etc.). Office rent totaling P5,000 were billed for January operations.
• Miscellaneous overhead expenses totaled P13,300 for January.

Any over- or underapplied overhead is considered material for the company.

REQUIRED:

1. How much is the total manufacturing costs for January?
2. Give the entry to record the closing of over-underapplied overhead for the period.
3. How much is the adjusted ending Work-in-Process Inventory?
4. How much is the Net income for January?