Assume that the defective goods were charged to all jobs, what is the cost transferred to finish goods at the end of the year? KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured 200 units coil over springs. After final inspection, it was determined that 15 units were defective. The cost per unit to rework the defective units were the following: P100 for direct materials, P160 for direct labor and the appropriate factory overhead rate. The following were the unit cost for the 200 coil over springs: Direct materials P800 Direct labor P350 Applied overhead 160% of direct labor cost (150% in case defective units were charged to specific order) 342,000 335,000 349,740 342,500
Assume that the defective goods were charged to all jobs, what is the cost transferred to finish goods at the end of the year? KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured 200 units coil over springs. After final inspection, it was determined that 15 units were defective. The cost per unit to rework the defective units were the following: P100 for direct materials, P160 for direct labor and the appropriate factory overhead rate. The following were the unit cost for the 200 coil over springs: Direct materials P800 Direct labor P350 Applied overhead 160% of direct labor cost (150% in case defective units were charged to specific order) 342,000 335,000 349,740 342,500
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Assume that the defective goods were charged to all jobs, what is the cost transferred to finish
goods at the end of the year?
KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured
200 units coil over springs. After final inspection, it was determined that 15 units were
defective. The cost per unit to rework the defective units were the following: P100 for
direct materials, P160 for direct labor and the appropriate factory overhead rate.
The following were the unit cost for the 200 coil over springs:
Direct materials
Direct labor
P800
P350
Applied overhead 160% of direct labor cost
(150% in case defective units were charged to specific order)
342,000
335,000
349,740
342,500
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