Problem 10: Spoiled Goods Josh Inc. has completed the Job 101, containing 2,200 shoes, during 2016 at the following unit costs: Direct materials 2,000 1,000 1,300 Direct labor Factory overhead (including an allowance of P300 for spoiled work) Final inspection of Job 101 disclosed 200 spoiled shoes which were sold to a department for P400,000. Required: 1. What is the unit cost of shoes produced on Job 101 if spoilage loss is common to all jobs? 2. What is the unit cost of shoes produced on Job 101 if spoilage loss is charged to specific Job 101?

Problem 10: Spoiled Goods Josh Inc. has completed the Job 101, containing 2,200 shoes, during 2016 at the following unit costs: Direct materials 2,000 1,000 1,300 Direct labor Factory overhead (including an allowance of P300 for spoiled work) Final inspection of Job 101 disclosed 200 spoiled shoes which were sold to a department for P400,000. Required: 1. What is the unit cost of shoes produced on Job 101 if spoilage loss is common to all jobs? 2. What is the unit cost of shoes produced on Job 101 if spoilage loss is charged to specific Job 101?

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

Section: Chapter Questions

Problem 16P: Lloyd Industries manufactures electrical equipment from specifications received from customers. Job...

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Problem 2Harper 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 20.00Direct labor 18.00Factory overhead (includes an allowanceof P1 for spoiled work) 18.00 P 56.00Final inspection of Job 301 discloses 200 spoiled t-shirts which were sold to a jobber for P6,000. a. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the goods produced on Job 301? b. 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?
Illustrative Problem: SPOILED GOODS The GRAND CABINET COMPANY manufactures custom cabinets for homebuilders. During the current period, an order for 3,500 was begun as Job No. 2-54. Unit cost is as follows: Direct materials Direct labor Factory overhead (includes P1.00 allowance for spoiled units) Total P 19.60 17.20 2) If loss is special (specific order). 14.80 P 51.60 When the job was completed, 200 units were rejected and sold for P15.60 each. A separate work in process account is used for each cost element. Required: Journal entries under each of the following: T 1) If loss is due to internal failure (total production).
Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during Marchat the following unit costs:Direct materials P1,500Direct labor 1,000Manufacturing overhead (includes allowances of P50 for spoiled work) 5003,000Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber forP600,000.29. What would be the unit cost of the good coats produced on job #040335 assuming thatspoilage loss is charged to all production? Attributable to exacting specifications of job#040335?a. 2,950 b. 3,000 c. 3,145 d. 3,20030. Using the information in item 29, what is the journal entry to record the disposal of thespoiled coats?a. Cash 600,000Manufacturing overhead 1,200,000Work in process -Job #040335 1,800,000b. Cash 600,000Work in process -Job #040335 600,000c. Cash 600,000Abnormal loss 1,200,000Work in process -Job #040335 1,800,000d. Cash 600,000Manufacturing overhead 1,170,000Work in process -Job #040335 1,170,000
Elmer Company’s Job #040335 for the manufacture of 6,600 coats was completed during Marchat the following unit costs:Direct materials P1,500Direct labor 1,000Manufacturing overhead (includes allowances of P50 for spoiled work) 5003,000Final inspection of job #040335 disclosed 600 spoiled coats, which were sold to a jobber forP600,000.29. What would be the unit cost of the good coats produced on job #040335 assuming thatspoilage loss is charged to all production? Attributable to exacting specifications of job#040335?a. 2,950 b. 3,000 c. 3,145 d. 3,200
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%?
16. Harp Company's Job 501 for the manufacture of 2,200 coats, which was completed during August at the unit costs presented below. Final inspection of Job 501 disclosed 200 spoiled coats which were sold to a jobber for P6,000. Direct materials Direct labor P20 18 Factory overhead (includes an Page 3 of 6 18 P56 Assume that spolage loss is charged to all production during August. What would be the unit cost of the good allowance of P1 for spoiled work coasts produced on Job 5017 а. P53 b. P55 C. P56 d. P58.60 17. Using the same information, assume instead that the spoilage loss is attributable to the exacting specifications of Job 501 and is charged to this specific job. What would be the unit cost of the good coats produced on Job 501? a. P55 b. P57.50 c. P58.60 d. P61.60
ABC Company’s Job 123 for the manufacture of 2,000 bags was completed during June 2022 at the following unit costs:· Direct Materials, P20· Direct Labor, P18· Overhead (including allowance of P1 for spoiled work), P18 Final inspection of Job 123 disclosed 100 spoiled bags which were sold to an online store for P1,985. Determine the total cost of completed units.
ABC Company Job 101 for the manufacture of 2,200 coats, which was completed during October at the unit costs presented below. Final inspection of Job 101 disclosed 200 spoiled coats which were sold to a jobber for P8,000. Direct materials - P20; Direct labor - P18; Factory overhead (includes an allowance of P1 for spoiled work)-P18. Assume that spoilage loss is charged to all production during October. What would be the unit cost for the good coats produced on Job 101?
PART 4 Quest Company manufactures electric drills to the exacting specifications of various customers, During April 2019, job 403 to produce 1,100 drills was completed at the following costs per unit: $ 20 $ 16 $ 24 $60 Final inspection of job 403 disclosed 100 spoiled units. The spoiled drills were sold for $ 1,500. Direct materials Direct labor Applied overhead Total Required: Prepare the necessary journal entry (if any) to account for the spoilage (1) assuming the spoilage is attributable to job 403. (2) assuming the spoilage is attributable to all jobs.
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?
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?
Blue Co.'s Job 405 for the manufacture of 2,200 wagons was completed during August at the unit costs presented below. Direct materials $24 Direct labor 18 Factory overhead 14 $56 Final inspection of Job 405 disclosed 200 spoiled wagons that were sold to a jobber for $6,000. Assume that spoilage loss is attributable to the exacting specifications of Job 405 and is charged to this specific job. What would be the unit cost of the good wagons produced on Job 405?