NUBD Co. manufactures lifting equipment. One order from HFL Co. for 200 lifting equipment showed the the following costs per unit: Materials Labor Factory overhead, 160% of direct labor cost (150% in cases in which any defective unit costs are to charged to a specific order) P 200 P 175 Final inspection revealed that 15 of the units were not properly produced. Rework of each defective unit requires P50 for materials, P80 for labor, and factory overhead at the appropriate rate.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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Assuming cost of defective units is charged to all the jobs, what is the unit cost of finished goods?

NUBD Co. manufactures lifting equipment. One order from HFL Co. for 200 lifting
equipment showed the the following costs per unit:
Materials
Labor
Factory overhead, 160% of direct labor cost (150% in cases in
which any defective unit costs are to charged to a specific order)
P 200
P 175
Final inspection revealed that 15 of the units were not properly produced. Rework of
each defective unit requires P50 for materials, P80 for labor, and factory overhead at
the appropriate rate.
Transcribed Image Text:NUBD Co. manufactures lifting equipment. One order from HFL Co. for 200 lifting equipment showed the the following costs per unit: Materials Labor Factory overhead, 160% of direct labor cost (150% in cases in which any defective unit costs are to charged to a specific order) P 200 P 175 Final inspection revealed that 15 of the units were not properly produced. Rework of each defective unit requires P50 for materials, P80 for labor, and factory overhead at the appropriate rate.
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