Case b. Internal failure. The following costs were incurred in producing 2,000 units of computer tables. Cost accumulation: Direct materials Direct labor Manufacturing overhead (150% of DL cost) PI,320,000 1,600,000 100 units were discovered defective and the cost to correct the units are as follows: Direct materials Direct labor Overhead is applied at the same rate P20,000 32,000 The computer tables are then billed to customer at 60% above cost. Required: Entries to record the abore from production up to its completion
Case b. Internal failure. The following costs were incurred in producing 2,000 units of computer tables. Cost accumulation: Direct materials Direct labor Manufacturing overhead (150% of DL cost) PI,320,000 1,600,000 100 units were discovered defective and the cost to correct the units are as follows: Direct materials Direct labor Overhead is applied at the same rate P20,000 32,000 The computer tables are then billed to customer at 60% above cost. Required: Entries to record the abore from production up to its completion
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: Cost Accounting - Kindly answer in good form.
Transcribed Image Text:Case b. Internal failure. The following costs were incurred in producing 2,000
units of computer tables.
Cost accumulation:
P1,320,000
1,600,000
Direct materials
Direct labor
Manufacturing overhead (150% of DL cost)
100 units were discovered defective and the cost to correct the units are as follows:
Direct materials
Direct labor
Overhead is applied at the same rate
P20,000
32,000
The computer tables are then billed to customer at 60% above cost.
Required: Entries to record the above from production up to its completion
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