5. VVV Co. manufactures electric motor drills. During July 2020, Job 007 for the production of 600 motor drills was completed at the following costs: Direct Materials 2,100,000 1,200,000 Direct Labor Applied Factory Overhead (P60,000 allowance included) 510,000 Final inspection of Job 007 disclosed 15 defective units and 45 spoiled units. The defective drills were reworked with the following costs: Direct materials 6,500 Direct labor 20,000 ? Overhead And the spoiled drills were can be sold for P152,000. 1. If the Rework cost and Spoilage is attributable to internal failure and charged to all production, what is the total cost transferred to Finished Goods Inventory of Job 007? a. 3,693,000 b. 3,524,250 c. 3,468,750 d. 3,633,000 2. If the Rework cost and Spoilage is attributable to exacting specifications and charged to specific job, what is the unit cost of Job 007? a. 6,545.95 b. 6,654.05 c. 6,544.14 d. 6.727.78

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
5. VVV Co. manufactures electric motor drills. During July 2020, Job 007 for the production of 600
motor drills was completed at the following costs:
Direct Materials
2,100,000
1,200,000
Direct Labor
Applied Factory Overhead (P60,000 allowance included)
510,000
Final inspection of Job 007 disclosed 15 defective units and 45 spoiled units.
The defective drills were reworked with the following costs:
Direct materials
Direct labor
6,500
20,000
?
Overhead
And the spoiled drills were can be sold for P152,000.
1. If the Rework cost and Spoilage is attributable to internal failure and charged to all
production, what is the total cost transferred to Finished Goods Inventory of Job 007?
a. 3,693,000
b. 3,524,250
c. 3,468,750
d. 3,633,000
2. If the Rework cost and Spoilage is attributable to exacting specifications and charged to
specific job, what is the unit cost of Job 007?
a. 6,545.95
b. 6,654.05
c. 6,544.14
d. 6,727.78
Transcribed Image Text:5. VVV Co. manufactures electric motor drills. During July 2020, Job 007 for the production of 600 motor drills was completed at the following costs: Direct Materials 2,100,000 1,200,000 Direct Labor Applied Factory Overhead (P60,000 allowance included) 510,000 Final inspection of Job 007 disclosed 15 defective units and 45 spoiled units. The defective drills were reworked with the following costs: Direct materials Direct labor 6,500 20,000 ? Overhead And the spoiled drills were can be sold for P152,000. 1. If the Rework cost and Spoilage is attributable to internal failure and charged to all production, what is the total cost transferred to Finished Goods Inventory of Job 007? a. 3,693,000 b. 3,524,250 c. 3,468,750 d. 3,633,000 2. If the Rework cost and Spoilage is attributable to exacting specifications and charged to specific job, what is the unit cost of Job 007? a. 6,545.95 b. 6,654.05 c. 6,544.14 d. 6,727.78
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Impairment of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education