Problem 10: Spoiled GoodsPon Inc. has completed the Job 101, containing 2,200 shoes, during 2016 atthe following unit costs:2,0001,0001,300Final inspection of Job 101 disclosed 200 spoiled shoes which were sold to aDirect materialsDirect laborRactory overhead (including an allowance of P300 for spoiled work)department for P400,000.Required:1. What is the unit cost of shoes produced on Job 101 if spoilage loss iscommon to all jobs?2. What is the unit cost of shoes produced on Job 101 if spoilage loss ischarged to specific Job 101?

Introduction In job costing if there is an spoilage which is normal then such spoilage is commonly…

Answered: ProInc, has completed the Job 101,…

Principles of Cost Accounting

17th Edition

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Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 20E: Spoiled work Roger Company manufactures tennis clothing. During the month, the company cut and...

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AAA Appliances Inc. has two production departments. The nature of the process is such that no units remain in process in Finishing at the end of the period. At the beginning of the period, 10,000 units with a cost of 30,000 were transferred from Assembly to Finishing. Finishing incurred costs of 8,800 for materials, 7,200 for labor, and 8,800 for factory overhead, and finished 10,000 units during the month. Using the data in E5-9, prepare a statement of cost of goods manufactured for the month ended January 31, 2016, assuming that no further work was done in Assembly during January.
Spoiled work Roger Company manufactures tennis clothing. During the month, the company cut and assembled 8,000 skirts. One hundred of the skirts did not meet specifications and were considered seconds. Seconds are sold for 9.95 per skirt, whereas first-quality skirts sell for 39.95. During the month, Work in Process was charged 108,000: 36,000 for materials, 48,000 for labor, and 24,000 for factory overhead. Record the entries to first charge production costs for the period and to then record the loss due to spoiled work, under each of the following conditions: a. The loss due to spoiled work is spread over all jobs in the department. b. The loss due to spoiled work is charged to the specific job because it is a special order.
Defective work Herbert Electronics manufactures an integrated transistor circuit board for repeat customers but also accepts special orders for the same product. Job No. JM4 incurred the following unit costs for 1,000 circuit boards manufactured: When the completed products were tested, 50 circuit boards were found to be defective. The costs per unit of correcting the defects follow: Record the journal entry for the costs to correct the defective work: a. If the cost of the defective work is charged to factory overhead. b. If the cost of the defective work is charged to the specific job.
CleanCom Company specializes in cleaning commercial buildings and construction sites. Each building and site is different, requiring amounts and types of supplies and labor for each job. CleanCom estimated the following for the year: During the year, the following actual amounts were experienced: If CleanCom uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the cost of cleaning a construction site that takes 140 of direct materials and 21 direct labor hours? a. 455 b. 508 c. 648 d. 644
One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells for 149. The cost of each Slam consists of: Job 100 produced 100 Slams, of which six were spoiled and classified as seconds. Seconds are sold to discount stores for 50 each. Required: 1. Under the assumption that the loss from spoilage will be distributed to all jobs produced during the current period, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units. 2. Under the assumption that the loss due to spoilage will be charged to Job 100, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units.
NIKE Inc. has completed the Job 101, containing 1,100 shoes, during 2016 at the following unit cost:Direct materials 2,000Direct labor 1,000Factory overhead (including an allowance of P300 for spoiled work) 1,300 Final inspection of Job 101 disclosed 100 spoiled shoes which were sold to a department for P200,000.1. What is the unit cost of good shoes produced on Job 101 if spoilage loss is charged to allproduction?A. 4,000B. 4,100C. 4,400D. 4,3002. What is the unit cost of good shoes produced on Job 101 if spoilage loss is charged to specificJob 101?A. 4,300B. 4,000C. 4,500D. 4,200
Samar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows: Direct materials P300 Direct labor 270 Factory overhead (includes an allowance of P15 Spoiled work) 270Final inspection of Job 888 disclosed 1,250 spoiled units, which were sold for P225,000.What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004? a. 840 b. 889.50 c. 825 d. 862.50
2. GondolaB Company's Job No. 205 (for the manufacture of 6,600 coats) was completed August, 20M at the following unit costs: Direct materials - P1,500, Direct labor - 1,000, Factory overhead (including allowance of P50 for spoiled work) - 500. Total = P3,000. Final inspection of Job No. 205 disclosed 600 spoiled costs. These were subsequently sold to a jobber for P600,000. Assuming that spoilage loss is chargeable to the particular job, the unit cost of the good coats produced per Job No. 205 must be: P3,145 P2,950 P3,000 P3,150
Simar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs presented as follows: Direct materials P300 Direct labor 270 Factory overhead (includes an allowance of P15 Spoiled work) 270Final inspection of Job 888 disclosed 1,250 spoiled units, which were sold for P225,000.What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 004?
Job 456 manufactured 12,000 units that were completed in February at unit costs presented as follows: Direct materials P35 Direct labor 28 Factory overhead (includes an allowance of P15 Spoiled work) 29Final inspection of Job 456 disclosed 125 spoiled units, which were sold for P22,500.What would be the unit cost of good units if the spoilage loss is attributable to exacting specifications of Job 001?
Integrity Company’s Job 1088 manufactured 13,750 units that were completed in February at unit costs presented as follows:Direct materials- P300Direct labor- 270Factory overhead (includes an allowance of P15 spoiled work)- P270Final inspection of Job 1088 disclosed 1,250 spoiled units, which were sold for P225,000.What would be the unit selling price if the spoilage is attributable to exacting specifications of Job 1088 and the entity maintain a gross profit of 50%?
Harper Company’s Job 301 for the manufacture of 2,200 t-shirts was completed during August 2020 at the following unit costs: Direct materials P 20.00 Direct labor 18.00 Factory overhead (includes an allowance of P1 for spoiled work) 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled t-shirts which were sold to a jobber for P6,000. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the goods produced on Job 301? Assume that spoilage loss is attributable to exacting specification of Job 301 and is charged to this specific job. What would be the unit cost of the goods produced on Job 301?

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