A job order for 500 units of children's party giveaways were processed with costs of P80,000 and P30,000for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor costwhich excludes a 5% provision for spoilage. Prior to transfer to the storeroom, 25 units were found to bespoiled with an estimated market value of P50 per unit.What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?

Given is: Job units = 500 Direct materials = $80000 Direct labour = $30000 Factory Overhead = 50% of…

Answered: What is the unit cost of the goods…

Business

Accounting

What is the unit cost of the goods transferred to the storeroom if the loss is charged to total production?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...

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