Tools Company manufactures electric drills to the exacting specifications of various customers. During February 2014, Job 403 for the production of 1,100 drills was completed at the following cost per unit: Direct materials P100 Direct labor 80 Factory overhead Total 120 300 Final inspection of Job 403 disclosed 50 defective units and 100 units of normal spoilage. The defective drills were reworked at a total cost of P5,000 and the spoiled drills were sold to a jobber for P15,000. 17. The unit cost of the good units produced on Job 403 was: а. Р330 b. Р320 с. Р300 d. P290
Tools Company manufactures electric drills to the exacting specifications of various customers. During February 2014, Job 403 for the production of 1,100 drills was completed at the following cost per unit: Direct materials P100 Direct labor 80 Factory overhead Total 120 300 Final inspection of Job 403 disclosed 50 defective units and 100 units of normal spoilage. The defective drills were reworked at a total cost of P5,000 and the spoiled drills were sold to a jobber for P15,000. 17. The unit cost of the good units produced on Job 403 was: а. Р330 b. Р320 с. Р300 d. P290
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The following information relates to Blueberry Company's materials Y
Working days per year
Normal lead time in working days
Maximum lead time in working days
240
20
45
18. Assuming that the units of material Y will be required evenly throughout the year,
the safety stock and order point would be
Safety Stock
600
600
Order Point
а.
600
b.
1,350
600
с.
750
d.
750
1,350
Transcribed Image Text:Tools Company manufactures electric drills to the exacting specifications of various
customers. During February 2014, Job 403 for the production of 1,100 drills was
completed at the following cost per unit:
P100
Direct materials
Direct labor
80
Factory overhead
Total
120
300
Final inspection of Job 403 disclosed 50 defective units and 100 units of normal
spoilage. The defective drills were reworked at a total cost of P5,000 and the spoiled
drills were sold to a jobber for P15,000.
17. The unit cost of the good units produced on Job 403 was:
а. Р330
b. Р320
с. Р300
d. P290
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