Catriona Company completed 300 units of customized jewelry. The product cost per unit: Direct materials P8,400 Direct labor 500 Factory overhead 750 P9,650 However, upon quality inspection, 20 units were found to be spoiled. The spoiled goods are sold for P138,400. The spoilage is due to customer's preferences. All good items and spoiled items are sold. How much is the product cost per unit?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 19E: Walloon Company produced 150 defective units last month at a unit manufacturing cost of 30. The...

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Lloyd Industries manufactures electrical equipment from specifications received from customers. Job X10 was for 1,000 motors to be used in a specially designed electrical complex. The followingcosts were determined for each motor: At final inspection, Lloyd discovered that 33 motors did not meet the exacting specifications established by the customer. Anexamination indicated that 18 motors were beyond repair andshould be sold as spoiled goods for 75 each. The remaining15 motors, though defective, could be reconditioned as first-qualityunits by the addition of 1,650 for materials, 1,500 for labor, and1,200 for factory overhead. Required: Prepare the journal entries to record the following: 1. The scrapping of the 18 motors, with the income from spoiledgoods treated as a reduction in the manufacturing cost of thespecific job. 2. The correction of the 15 defective motors, with the additionalcost charged to the specific job. 3. The additional cost of replacing the 18 spoiled motors with newmotors. 4. The sale of the spoiled motors for 75 each. 5. If the reconditioned motors sell for 400 each, is Lloyd betteroff reconditioning the defective motors or selling them as isfor 75 as spoiled goods?
Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses takes 45,000 direct labor hours and involves 1,700 parts and 115 inspections. The manufacturing of tinted glasses takes 115,000 direct labor hours and involves 1,400 parts and 450 inspections. The traditional method applies $560,000 of overhead on the basis of direct labor hours. What is the amount of overhead per direct labor hour applied to the clear glass products? A. $933.33 B. $157,500 C. $322.500 D. $402,500
Walloon Company produced 150 defective units last month at a unit manufacturing cost of 30. The defective units were discovered before leaving the plant. Walloon can sell them as is for 20 or can rework them at a cost of 15 and sell them at the regular price of 50. What is the total relevant cost of reworking the defective units? a. 2,250 b. 3,000 c. 4,500 d. 6,750
V Company completed 375 units of customized jewelry.                     The product cost per unit:                                                                Direct materials                               P8,750                                                     Direct labor                                       600                                             Factory overhead                            1,200                                                       10,550                                                                                      However, upon quality inspection, 10 units were found to be spoiled.                                                              The spoiled goods are sold for P76,300.                        The spoilage is due to customer's preferences.                                                                                                     All good items and spoiled items are sold.…
Zozibini Company completed               5,000 units of customized souvenir items.                                The product cost per unit:                                                  Direct materials                               P75                               Direct labor                                       60                                  Factory overhead                            45                                                                                                 P180                             However, upon quality inspection, 60 units were found to be spoiled.             The spoiled/damaged goods are sold for P7,200.       The spoilage is due to the employee's fault.                                             Finished goods - beginning balance is P257,300                        The cost of goods sold is 903,800                      How much is the ending balance of finished goods inventory?
Jimin Company completed 5,200 units of customized souvenir items.                                                              The product cost per unit:                                                                Direct materials                               P50                                              Direct labor                                       80                                                Factory overhead                            60                                                                                                               P190                                           However, upon quality inspection, 50 units were found to be spoiled.                                                              The spoiled/damaged goods are sold for P6,000.                     The spoilage is due to the employee's fault.                                                          How much is the amount charged to factory overhead control?
Luke Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The following cost per units are as follows: Materials, P1,000; Labor, P900; Factory overhead including P20 allowance for spoilage, P400. Final inspection revealed that 600 bags were spoiled which were sold as export overruns at 60% of production cost. The good units were delivered and billed to the customer at 60% gross profit. The spoilage is due to the exacting specifications of the customer.How much is the billing price? PPP, QQQ and RRR are partners sharing profits and losses of 5:3:2, respectively. As of December 31, 2020, their capital balances were P99,750; P84,000 and P63,000 respectively. On January 1, 2021, the partners admitted SSS as a new partner and according to their agreement, SSS will contribute P84,000 in cash to the partnership and also pay P10,500 for 15% of QQQ’s share. SSS will be given a 20% share in profits, while the original partners’ share will be…
MARIKINA SHOE Company had a production run of 5, 000 pairs of quality shoes during the month of June 2021, at the following costs per pair: Materials, P80; Labor, P50; and Overhead (125% of direct labor cost). Final inspection revealed that 500 pairs were spoiled which were sold as seconds for P20, 000. The good units were then shipped to the customer at cost plus 50% mark-up on cost. Assuming the spoilage is a result of changes in the specification of the customer, the cost per good units is: A. 192.5 B. 209.44 C. 200.53 D. 288.75
Google Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The following cost per units are as follows: Materials, P1,000; Labor, P900; Factory overhead including P20 allowance for spoilage, P400. Final inspection revealed that 600 bags were spoiled which were sold as export overruns at 60% of production cost. The good units were delivered and billed to the customer at 60% gross profit. The spoilage is due to the exacting specifications of the customer. How much is the billing price?
Legacy Company completed 200 units of customized jewelry. The product cost per unit: Direct materials P7,500 Direct labor 2,500 Factory overhead 2,500 P12,500 However, upon quality inspection: 2 units were sub-standard due to internal failure and sold immediately for an amount of P15,000. How much is charged to factory overhead control due to spoiled goods?
Jungkook Company completed 500 of customized apparel. The product cost per unit: Direct materials P200 Direct labor 300 Factory overhead 150 P650 However, upon quality inspection, 30 units were sub-standard due to external failure and are to be rework. The rework cost per unit of the prime costs are: Direct materials P50 Direct labor 60 How…
18. MARIKINA SHOE Company had a production run of 5, 000 pairs of quality shoes during the month of June 2021, at the following costs per pair: Materials, P80; Labor, P50; and Overhead (125% of direct labor cost). Final inspection revealed that 500 pairs were spoiled which were sold as seconds for P20, 000. The good units were then shipped to the customer at cost plus 50% mark-up on cost. Assuming the spoilage is a result of changes in the specification of the customer, the cost per good units is: a. • P192.5 b. • P209.44 c. • P200.53 d. • P288.75

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