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. 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 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. What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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.
What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86985e63-72c7-4fe1-9657-b27b8d3934b7%2Fefbb2d01-858f-4b03-9be9-8969d31e6402%2Fiiorrb2_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?
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