Sheba, Inc. produces custom-made winter coats for pets. During December, management determined the following facts all relating to Job 22:

Total production 300 jackets

Abnormal spoilage 16 jackets

Abnormal defective units 4 jackets

Normal spoilage 10 jackets

Normal defective units 2 jackets

Salvage value for spoiled units P 5 per jacket

Cost to rework defective units:

Materials P 18

Direct labor 25

Applied factory overhead 5

Scrap materials were sold for a total of P35. It costs P20 to dispose of waste materials. Total production costs were calculated to be P7,500.

Required:

Prepare entries to record the above information under job order costing. Assume the factory overhead application rate ignores normal spoilage, rework costs, and resale value of scrap.

Answer rating: 100% (QA)

To record the above information under job order costing we need to make the follow... View the full answer