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unit selling price

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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Trinidad Metal Shop, manufactures metal products that require casting, such as engine blocks, pistons and engine housings. During the current year, an order of 30,000 custom housing was begun on job number 202 for Mr. Pic . After the job was completed, the housing was inspected and 4% of the units were determined to be defective. Mr. Pic agreed to accept the good units only at 140% of cost. The spoiled units can be sold as seconds for P15 each. Spoiled goods are kept in an inventory account separate from finished goods. Total costs charged to job #202 are: Materials - P276,000; Labor (6,0o0hrs @ P14 per hour) is P84,000 and factory overhead (P30 per labor hours) is P180,000. If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units?
Transcribed Image Text:Trinidad Metal Shop, manufactures metal products that require casting, such as engine blocks, pistons and engine housings. During the current year, an order of 30,000 custom housing was begun on job number 202 for Mr. Pic . After the job was completed, the housing was inspected and 4% of the units were determined to be defective. Mr. Pic agreed to accept the good units only at 140% of cost. The spoiled units can be sold as seconds for P15 each. Spoiled goods are kept in an inventory account separate from finished goods. Total costs charged to job #202 are: Materials - P276,000; Labor (6,0o0hrs @ P14 per hour) is P84,000 and factory overhead (P30 per labor hours) is P180,000. If the spoilage is attributable to Job 202 only, what is the unit selling price of the good units?
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