Simar 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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Simar 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?

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