Guess Apparel completed 3,600 expensive bags during the 1" quarter of the current year. The following costs per unit are presented below. P200 180 Direct materials Direct labor Factory overhead, including P10 allowance for spoilage 180 Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed the customer at 20% gross profit. 6. If the spolage is common to all jobs, the amount billed to the customer is 7. If spoilage is due to customer's intervention, how much is the gross profit on the order?

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
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Guess Apparel completed 3,600 expensive bags during the 1" quarter of the current year. The
following costs per unit are presented below:
Direct materials
Direct labor
P200
180
180
Factory overhead, including P10
allowance for spoilage
Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an
amount equal to 40% of production costs. The good units were delivered and billed the
customer at 20% gross profit
6. If the spoilage is common to all jobs, the amount billed to the customer is
7. spoilage is due to customer's intervention, how much is the gross profit on the
order?
Transcribed Image Text:Guess Apparel completed 3,600 expensive bags during the 1" quarter of the current year. The following costs per unit are presented below: Direct materials Direct labor P200 180 180 Factory overhead, including P10 allowance for spoilage Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed the customer at 20% gross profit 6. If the spoilage is common to all jobs, the amount billed to the customer is 7. spoilage is due to customer's intervention, how much is the gross profit on the order?
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