Job 456 manufactured 12,000 units that were completed in February at unit costs presented as follows: Direct materials P35 Direct labor 28 Factory overhead (includes an allowance of P15 Spoiled work) 29 Final inspection of Job 456 disclosed 125 spoiled units, which were sold for P22,500. What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 001?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Job 456 manufactured 12,000 units that were completed in February at unit costs presented as follows:

            Direct materials                                                              P35
            Direct labor                                                                    28
            Factory overhead (includes an allowance of P15
                        Spoiled work)                                                      29

Final inspection of Job 456 disclosed 125 spoiled units, which were sold for P22,500.

What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 001?

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