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Required: Journal entries under each of the following: 1) If loss is due to internal failure (total production). 2) If loss is special (specific order).

Required: Journal entries under each of the following: 1) If loss is due to internal failure (total production). 2) If loss is special (specific order).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Illustrative Problem: SPOILED GOODS The GRAND CABINET COMPANY manufactures custom cabinets for homebuilders. During the current period, an order for 3,500 was begun as Job No. 2-54. Unit cost is as follows: Direct materials Direct labor Factory overhead (includes P1.00 allowance for spoiled units) Total P 19.60 17.20 2) If loss is special (specific order). 14.80 P 51.60 When the job was completed, 200 units were rejected and sold for P15.60 each. A separate work in process account is used for each cost element. Required: Journal entries under each of the following: T 1) If loss is due to internal failure (total production).
Transcribed Image Text:Illustrative Problem: SPOILED GOODS The GRAND CABINET COMPANY manufactures custom cabinets for homebuilders. During the current period, an order for 3,500 was begun as Job No. 2-54. Unit cost is as follows: Direct materials Direct labor Factory overhead (includes P1.00 allowance for spoiled units) Total P 19.60 17.20 2) If loss is special (specific order). 14.80 P 51.60 When the job was completed, 200 units were rejected and sold for P15.60 each. A separate work in process account is used for each cost element. Required: Journal entries under each of the following: T 1) If loss is due to internal failure (total production).
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