Zea Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows: Direct materials $300 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 $225,000. What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004?
Zea Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows: Direct materials $300 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 $225,000. What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zea Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows:
Direct materials $300
Direct labor 270
Factory
Spoiled work) 270
Final inspection of Job 888 disclosed 1,250 spoiled units, which were sold for $225,000.
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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