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Please show the solution in good accounting form For the year ended December 31, 2020, UA Inc. incurred the following costs on Job Order 201 for manufacturing of 500 units: Original cost accumulation: Direct Materials 1 000 000 Direct Labor

Please show the solution in good accounting form For the year ended December 31, 2020, UA Inc. incurred the following costs on Job Order 201 for manufacturing of 500 units: Original cost accumulation: Direct Materials 1 000 000 Direct Labor

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 7PB: Please use the information from this problem for these calculations. After grouping cost pools and...
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Please show the solution in good accounting form

For the year ended December 31, 2020, UA Inc. incurred the following costs on Job Order 201 for manufacturing of 500 units:

Original cost accumulation:

Direct Materials 1 000 000
Direct Labor 800 000
Factory overhead 200 000

Direct cost of reworking 100 units:

Direct Materials 200 000
Direct Labor 400 000

1. What is the cost per unit of Job Order 201 if the rework costs were attributable to the exacting specification of Job Order 201?
a. 2,600
b. 2,500
c. 2,700
d. 2,200


2. What is the cost per unit of Job Order 201 of the rework costs were attributable to internal failure?
a. 2,500
b. 2,400
c. 2,000
d. 2,300

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