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The Modern Co. does not maintain backup documents for its computer files. In June, some of the current data were lost, and you have been asked to help reconstruct the data. The following beginning balances are known:

As of June 1Direct materials inventoryP 12,000

Work in process inventory4,500

Finished goods inventory11,000

Manufacturing overhead - actual16,500

Accounts payable6,000

Reviewing old documents and interviewing selected employees have turned up the following additional information:

• The production superintendent's cost sheets showed that materials of P2,600 were contained in the June 30 work in process inventory.
• Also, 300 direct labor hours had been expended at P6 per hour on the goods in ending work in process inventory.
• The Accounts Payable account is for direct materials purchases only. The clerk remembers clearly that the balance in the Accounts Payable account on June 30 was P8,000. An analysis of canceled checks shows payments of P40,000 were made to suppliers during the month.
• Payroll records show that 5,200 direct labor hours were recorded for the month. It was verified that there were no variations in pay rates among employees during that period.
• Records at the warehouse indicate that finished goods inventor totaled P16,000 on June 30.
• Another record kept manually indicates that cost of goods sold in June totaled P84,000.
• The predetermined overhead rate was based on an estimated 60,000 direct labor hours to be worked during the year, and an estimated P180,000 in manufacturing overhead costs.

1. Ending balance in work in process inventory on June 30

a. 5,300b. 13,400c. 15,000d. 20,300

2. Direct materials used during June

a. 2,600b. 18,000c. 42,500d. 43,000

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