A job order for 500 units of children's party giveaways were processed with costs of P80,000 and P30,000 for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor cost which excludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of P50 per unit. Assuming that the 25 units were only defective and are not sold but instead reworked for total direct materials cost of P375 and total direct labor cost of P500. What is the unit cost of the goods transferred to storeroom if the rework costs are charged to the specific job?

A job order for 500 units of children's party giveaways were processed with costs of P80,000 and P30,000 for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor cost which excludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of P50 per unit. Assuming that the 25 units were only defective and are not sold but instead reworked for total direct materials cost of P375 and total direct labor cost of P500. What is the unit cost of the goods transferred to storeroom if the rework costs are charged to the specific job?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15P: One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells...

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A job order for 500 units of children's party giveaways were processed with costs of P80,000 and P30,000 for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor cos which excludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to b spoiled with an estimated market value of P50 per unit. Assuming that the 25 units were only defective and are not sold but instead reworked for total direc materials cost of P375 and total direct labor cost of P500. What is the unit cost of the goods transferred to storeroom if the rework costs are charged to the specific job? What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?
A job order for 500 units of children's party gievaways were processed with costs P80,000 and P30,000 for direct materials and direct labor, respectively. Fcatory overhead was applied at 50% of direct labor cost which exludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of P50 per unit. What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?
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Kindly answer and explain the 2 questions.