Harper Company’s Job 301 for the manufacture of 2,200 t-shirts was completed during August 2020 at the following unit costs: Direct materials P 20.00 Direct labor 18.00 Factory overhead (includes an allowance of P1 for spoiled work) 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled t-shirts which were sold to a jobber for P6,000. a. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the goods produced on Job 301? b. Assume that spoilage loss is attributable to exacting specification of Job 301 and is charged to this specific job. What would be the unit cost of the goods produced on Job 301?
Problem 2
Harper Company’s Job 301 for the manufacture of 2,200 t-shirts was completed during August 2020 at the following unit costs:
Direct materials P 20.00
Direct labor 18.00
Factory
of P1 for spoiled work) 18.00
P 56.00
Final inspection of Job 301 discloses 200 spoiled t-shirts which were sold to a jobber for P6,000.
a. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the goods produced on Job 301?
b. Assume that spoilage loss is attributable to exacting specification of Job 301 and is charged to this specific job. What would be the unit cost of the goods produced on Job 301?
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