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Catriona Company completed 300 units of customized jewelry.       The product cost per unit:                                                  Direct materials                               P8,400                                      Direct labor                                       500                              Factory overhead                            750                                                                                              P9,650                                      However, upon quality inspection, 20 units were found to be spoiled.             The spoiled goods are sold for P138,400.        The spoilage is due to customer's preferences.                                                    All good items and spoiled items are sold.                                                                                                                                      How much is the product cost per unit?

Catriona Company completed 300 units of customized jewelry.       The product cost per unit:                                                  Direct materials                               P8,400                                      Direct labor                                       500                              Factory overhead                            750                                                                                              P9,650                                      However, upon quality inspection, 20 units were found to be spoiled.             The spoiled goods are sold for P138,400.        The spoilage is due to customer's preferences.                                                    All good items and spoiled items are sold.                                                                                                                                      How much is the product cost per unit?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Catriona Company completed 300 units of customized jewelry.      

The product cost per unit:                                                 

Direct materials                               P8,400                                     

Direct labor                                       500                             

Factory overhead                            750                             

                                                                P9,650                                     

However, upon quality inspection, 20 units were found to be spoiled.            

The spoiled goods are sold for P138,400.       

The spoilage is due to customer's preferences.                                                   

All good items and spoiled items are sold.                                               

                                                                                     

How much is the product cost per unit?

 

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