Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during March at the following unit costs: Direct materials P1,500 Direct labor 1,000 Manufacturing overhead (includes allowances of P50 for spoiled work) 500 3,000 Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber for P600,000. 29. What would be the unit cost of the good coats produced on job #040335 assuming that spoilage loss is charged to all production? Attributable to exacting specifications of job #040335? a. 2,950 b. 3,000 c. 3,145 d. 3,200 30. Using the information in item 29, what is the journal entry to record the disposal of the spoiled coats? a. Cash 600,000 Manufacturing overhead 1,200,000 Work in process -Job #040335 1,800,000 b. Cash 600,000 Work in process -Job #040335 600,000 c. Cash 600,000 Abnormal loss 1,200,000 Work in process -Job #040335 1,800,000 d. Cash 600,000 Manufacturing overhead 1,170,000 Work in process -Job #040335 1,170,000
Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during March
at the following unit costs:
Direct materials P1,500
Direct labor 1,000
Manufacturing overhead (includes allowances of P50 for spoiled work) 500
3,000
Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber for
P600,000.
29. What would be the unit cost of the good coats produced on job #040335 assuming that
spoilage loss is charged to all production? Attributable to exacting specifications of job
#040335?
a. 2,950 b. 3,000 c. 3,145 d. 3,200
30. Using the information in item 29, what is the
spoiled coats?
a. Cash 600,000
Manufacturing overhead 1,200,000
Work in process -Job #040335 1,800,000
b. Cash 600,000
Work in process -Job #040335 600,000
c. Cash 600,000
Abnormal loss 1,200,000
Work in process -Job #040335 1,800,000
d. Cash 600,000
Manufacturing overhead 1,170,000
Work in process -Job #040335 1,170,000
Step by step
Solved in 2 steps
