Luke Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The following cost per units are as follows: Materials, P1,000; Labor, P900; Factory overhead including P20 allowance for spoilage, P400. Final inspection revealed that 600 bags were spoiled which were sold as export overruns at 60% of production cost. The good units were delivered and billed to the customer at 60% gross profit. The spoilage is due to the exacting specifications of the customer. How much is the billing price?
Luke Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The following cost per units are as follows: Materials, P1,000; Labor, P900; Factory overhead including P20 allowance for spoilage, P400. Final inspection revealed that 600 bags were spoiled which were sold as export overruns at 60% of production cost. The good units were delivered and billed to the customer at 60% gross profit. The spoilage is due to the exacting specifications of the customer.
How much is the billing price?
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