SONA Co. received an order for 1,000 units of item AY-14.  Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate.  The materials cost per unit  is P140; labor cost, P200; and factory overhead for this order is to be applied at 80% of the labor cost. During production, 150 units were found to be defective and required the following total additional costs; materials, P3,000, labor, P7,500 and factory overhead at 80% of direct labor cost.  On final inspection, 50 units were classified as seconds and sold for P200 each, the proceeds being credited to the order.  The customer has agreed to accept the good units.

How much is the unit cost of the finished products?

 

Transcribed Image Text:

What would be the selling price per unit if the spoilage loss is common to Job AAA and the company maintains a 40% mark-up on cost? * (2 Points) X Company's Job AAA manufactured 12,000 units that were completed in April at unit costs presented as follows: Direct materials P300 270 Direct labor Factory overhead (excluding allowance of P15 For spoiled work) Final inspection of Job AAA disclosed 1,200 spoiled units, which were sold for P300,000. 225 What would be the selling price per unit if the spoilage loss is common to Job AAA and the company maintains a 40% mark-up on cost? * (2 Points) X Company's Job AAA manufactured 12,000 units that were completed in April at unit costs presented as follows: Direct materials P300 270 Direct labor Factory overhead (excluding allowance of P15 For spoiled work) Final inspection of Job AAA disclosed 1,200 spoiled units, which were sold for P300,000. 225

Answer rating: 100% (QA)

Unit Cost of Finished Products for Job AY14 To calculate the unit cost of the finished products for ... View the full answer