Samar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows:             Direct materials                                                              P300             Direct labor                                                                    270             Factory overhead (includes an allowance of P15                         Spoiled work)                                                      270 Final inspection of Job 888 disclosed 1,250 spoiled units, which were sold for P225,000. What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004?     a. 840 b. 889.50 c. 825 d. 862.50

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Samar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows:

            Direct materials                                                              P300
            Direct labor                                                                    270
            Factory overhead (includes an allowance of P15
                        Spoiled work)                                                      270

Final inspection of Job 888 disclosed 1,250 spoiled units, which were sold for P225,000.

What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004?
 
 
a. 840
b. 889.50
c. 825
d. 862.50
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Costing for Spoilage, rework and scrap
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education