Problem 5. Blims Manufacturing Company manufactures different office furniture and accounts for costs using the Job Order Costing System. During the 3rd quarter of the current year, 500 tables (Job Order No. 6-210) are ordered by an international firm. The costs incurred on this job are: Direct Materials Direct Labor Manufacturing overhead P1,250 per unit 5 hours per unit @ P48.00 per hr P50 per direct labor hour Final inspection revealed that 100 tables are defective and these can be reworked requiring 2 hours a unit in addition to overhead. The 500 units are delivered and billed the customer at cost plus 40%. REQUIRED: 1. Give the entries to record the above assuming that the defective job is due to customer specification. 2. Determine the manufacturing cost per unit.
Problem 5. Blims Manufacturing Company manufactures different office furniture and accounts for costs using the Job Order Costing System. During the 3rd quarter of the current year, 500 tables (Job Order No. 6-210) are ordered by an international firm. The costs incurred on this job are: Direct Materials Direct Labor Manufacturing overhead P1,250 per unit 5 hours per unit @ P48.00 per hr P50 per direct labor hour Final inspection revealed that 100 tables are defective and these can be reworked requiring 2 hours a unit in addition to overhead. The 500 units are delivered and billed the customer at cost plus 40%. REQUIRED: 1. Give the entries to record the above assuming that the defective job is due to customer specification. 2. Determine the manufacturing cost per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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