During August of the current year, Job 067 for 2,000 handsaws was completed at the following cost per unit: Direct materials Direct làbor 5.00 4,00 Factory overhead (applied at 150% of DLC) 6.00 Final inspection revealed 100 defective units, which were reworked at a cost of P2.00 per unit for direct labor plus overhead at the predetermined rate. 25. If the defect is due to internal failure, what is the total rework cost and to what account should it be charged? Rework cost P 200 Р 200 P 500 P 500 Account charged Work in process Factory overhead control Work in process Factory overhead control а. b. с. d.
During August of the current year, Job 067 for 2,000 handsaws was completed at the following cost per unit: Direct materials Direct làbor 5.00 4,00 Factory overhead (applied at 150% of DLC) 6.00 Final inspection revealed 100 defective units, which were reworked at a cost of P2.00 per unit for direct labor plus overhead at the predetermined rate. 25. If the defect is due to internal failure, what is the total rework cost and to what account should it be charged? Rework cost P 200 Р 200 P 500 P 500 Account charged Work in process Factory overhead control Work in process Factory overhead control а. b. с. d.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:During August of the current year, Job 067 for 2,000 handsaws was completed at the
following cost per unit:
5.00
Direct materials
4,00
Direct làbor
Factory overhead (applied at 150% of DLC) 6.00
Final inspection revealed 100 defèctive units, which were reworked at a cost of P2.00
per unit for direct labor plus overhead at the predetermined rate.
25. If the defect is due to internal failure, what is the total rework cost and to what
account should it be charged?
Rework cost
P 200
P 200
P 500
P 500
Account charged
Work in process
Factory overhead control
Work in process
Factory overhead control
а.
b.
с.
d.
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