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Question - SHINING Apparel completed 3, 600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:
Direct materials P200
Direct Labor 180
Factory overhead, included P10 allowance for spoilage 180
Final inspection revealed that 600 bags were spoiled which were sold as export overrun at 40% of production costs. The good units were delivered and billed the customer at 120% above cost.
If the spoilage is common to all jobs, determine the amount billed to the customer?
a. P1,680,000
b. P2,100,000
c. P2,016,000
d. P3,696,000
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