unit selling price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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