During March, Mark Company incurred the following costs on Job 209 for the 200 motors: Original cost accumulation: Direct materials Direct labor P 660 800 Factory overhead 1,200 P2,660 Direct costs of reworking 10 units: Direct materials P 100 Direct labor 160 P, 260 Method A- The rework cost were attributable to the exacting specifications of Job 209, and the full rework costs were charged to this specific job. Method B- The defective units fall within the normal range and the rework is not related to a specific job, or the rework is common to all the jobs. 15. The cost per finished unit of Job 209 using Method A is: a. P15.60 b. P15.80 c. P13.30 d. P13.50 16. The cost per finished unit of Job 209 using Method B is: a. P13.30 b. P15.80 c. P15.30 d. P13.60

Cornerstones of Cost Management (Cornerstones Series)
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Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 27E: Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the...
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During March, Mark Company incurred the following costs on Job 209 for the 200
1201.
motors:
Original cost accumulation:
Direct materials
Direct labor
Р 660
800
Factory overhead
1,200
P2,660
Direct costs of reworking 10 units:
Direct materials
P 100
160
Direct labor
P, 260
Method A- The rework cost were attributable to the exacting specifications of Job
209, and the full rework costs were charged to this specific job.
Method B- The defective units fall within the normal range and the rework is not
related to a specific job, or the rework is common to all the jobs.
15. The cost per finished unit of Job 209 using Method A is:
a. P15.60
b. P15.80
с. Р13.30
d. P13.50
16. The cost ner finished unit of Job 209 using Method B is:
а. P13.30
b. P15.80
с. РI5.30
d. P13.60
Transcribed Image Text:During March, Mark Company incurred the following costs on Job 209 for the 200 1201. motors: Original cost accumulation: Direct materials Direct labor Р 660 800 Factory overhead 1,200 P2,660 Direct costs of reworking 10 units: Direct materials P 100 160 Direct labor P, 260 Method A- The rework cost were attributable to the exacting specifications of Job 209, and the full rework costs were charged to this specific job. Method B- The defective units fall within the normal range and the rework is not related to a specific job, or the rework is common to all the jobs. 15. The cost per finished unit of Job 209 using Method A is: a. P15.60 b. P15.80 с. Р13.30 d. P13.50 16. The cost ner finished unit of Job 209 using Method B is: а. P13.30 b. P15.80 с. РI5.30 d. P13.60
Viber Company manufactures electric drills to the exacting specifications of various
customers. During February 2014, Job 403 for the production of 1,100 drills WaS
completed at the following cost per unit:
Direct materials
Direct labor
Factory overhead
Total
P100
80
120
300
Final inspection of Job 403 disclosed 50 defective units and 100 units of normal
spoilage. The defective drills were reworked at a total cost of P5,000 and the spoiled
drills were sold to a jobber for P15,000.
17. The unit cost of the good units produced on Job 403 was:
а. Р330
b, Р320
с. Р300
d. 290
Transcribed Image Text:Viber Company manufactures electric drills to the exacting specifications of various customers. During February 2014, Job 403 for the production of 1,100 drills WaS completed at the following cost per unit: Direct materials Direct labor Factory overhead Total P100 80 120 300 Final inspection of Job 403 disclosed 50 defective units and 100 units of normal spoilage. The defective drills were reworked at a total cost of P5,000 and the spoiled drills were sold to a jobber for P15,000. 17. The unit cost of the good units produced on Job 403 was: а. Р330 b, Р320 с. Р300 d. 290
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