Reference no: EM132664928

A Company uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of P1,421,000 and 145,000, respectively, were used in developing the predetermined rate for 2019.

During 2019, the company worked on Job#888 and incurred the following costs and machine hours:

Direct Material P47,500
Direct Labot 21,800
Machine Hours 325

Problem a. What is the total cost of Job 888? What is the unit cost of P1,500 units that were produced? (Round to the nearest centavo.)

Problem  b. In completing job 888, 30 units were defective and had to be reworked at a cost of P25 each. Assume that spoilage and rework costs were included In the original estimated overhead costs. Where does the cost of the rework cost appear in the accounts of A Company?

Problem c. Disregard the facts in (b). Upon completing Job 888, the quality control inspector determined that 30 units were spoiled and would be unacceptable to the customer. Thirty additional good units were made at a total cost of P1,390. The spoiled units were sold for P240 as "seconds" to a store. What is the total cost of Job 888?