Job A has 1,000 units with costs incurred as follows: Direct materials of 100,000; Direct labor of 200,000 and with OH rate of 120% of DL. Per inspection, waste was determined weighing 100 kgs with zero value and damaged units (not reparable) of 100 units with salvage value of 36,000. The damage units were due to customer specifications. What is the unit cost of good units?
Job A has 1,000 units with costs incurred as follows: Direct materials of 100,000; Direct labor of 200,000 and with OH rate of 120% of DL. Per inspection, waste was determined weighing 100 kgs with zero value and damaged units (not reparable) of 100 units with salvage value of 36,000. The damage units were due to customer specifications. What is the unit cost of good units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Job A has 1,000 units with costs incurred as follows: Direct materials of 100,000; Direct labor of 200,000 and with OH rate of 120% of DL. Per inspection, waste was determined weighing 100 kgs with zero value and damaged units (not reparable) of 100 units with salvage value of 36,000. The damage units were due to customer specifications. What is the unit cost of good units?
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