1) Ms. Rose, a production worker earns P14,904 a month, and the company pays one month's salary as bonus at the end of the year. Ms. Rose is entitled to a half month paid vacation. The company also pays P2,070 a year into a pension fund of the worker. All labor-related fringe benefits of production workers are treated as manufacturing overhead. Bonus, vacation pay and pension costs are charged to production during the 11 and 1/2 months the employee is at work. What is the total liability for bonus, vacation and pension? 2) Martin Company received an order for 25 automatic mixing machines. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P80; labor cost, P194; and manufacturing overhead for this order is to be applied at 100% of the labor cost. During production, 5 units were found to be defective and required the following total additional costs: materials, P97, labor, P125, and manufacturing overhead at the 100% rate. On final inspection, 2 units were classified as seconds and sold for P400 each, the proceeds being credited to the order. The purchaser has agreed to accept the 23 machines, although the acceptable units are fewer than the number ordered. What is the unit cost of the completed units?
1) Ms. Rose, a production worker earns P14,904 a month, and the company pays one month's salary as bonus at the end of the year. Ms. Rose is entitled to a half month paid vacation. The company also pays P2,070 a year into a pension fund of the worker. All labor-related
2) Martin Company received an order for 25 automatic mixing machines. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P80; labor cost, P194; and manufacturing overhead for this order is to be applied at 100% of the labor cost. During production, 5 units were found to be defective and required the following total additional costs: materials, P97, labor, P125, and manufacturing overhead at the 100% rate. On final inspection, 2 units were classified as seconds and sold for P400 each, the proceeds being credited to the order. The purchaser has agreed to accept the 23 machines, although the acceptable units are fewer than the number ordered. What is the unit cost of the completed units?
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