Marsh Company had 150 units of product on hand at January 1 costing P21.00 each, Purchases...

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Marsh Company had 150 units of product on hand at January 1 costing P21.00 each, Purchases of product A during the month of January were as follows: Units Unit Cost P 22.00 200 250 23.00 100 January 10 18 28 24.00 Physical count on January 31 shows 250 units of product A on hand. 1. The cost of the inventory at January 31, under the FIFO method is: Harper Company's Job 301 for the manufacture of 2,200 T-shirts was completed during August 2016 at the following unit costs: P Direct materials Direct labor Factory overhead (includes an allowance of PI for spoiled work) 20.00 18.00 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled T-shirts which were sold to a jobber for P 6,000. 2. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the good units produced on Job 301? 3. Assume instead, that the 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 good coats produced on Job 3012 Marsh Company had 150 units of product on hand at January 1 costing P21.00 each, Purchases of product A during the month of January were as follows: Units Unit Cost P 22.00 200 250 23.00 100 January 10 18 28 24.00 Physical count on January 31 shows 250 units of product A on hand. 1. The cost of the inventory at January 31, under the FIFO method is: Harper Company's Job 301 for the manufacture of 2,200 T-shirts was completed during August 2016 at the following unit costs: P Direct materials Direct labor Factory overhead (includes an allowance of PI for spoiled work) 20.00 18.00 18.00 P 56.00 Final inspection of Job 301 discloses 200 spoiled T-shirts which were sold to a jobber for P 6,000. 2. Assume that spoilage loss is charged to all production during August. What would be the unit cost of the good units produced on Job 301? 3. Assume instead, that the 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 good coats produced on Job 3012

Answer rating: 100% (QA)

1 To calculate the cost of inventory at January 31 using the FirstInFirstOut FIFO method we need to consider the cost of the earliest purchases first and then the cost of subsequent purchases The cost ... View the full answer