Find what the unit cost of the good coats produced per job

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Reference no: EM132693510

GondolaB Company's Job No. 205 (for the manufacture of 6,600 coats) was completed August, 20M at the following unit costs:

Direct materials - P1,500,

Direct labor - 1,000,

Factory overhead (including allowance of P50 for spoiled work) - 500.

Total = P3,000.

Final inspection of Job No. 205 disclosed 600 spoiled costs. These were subsequently sold to a jobber for P600,000.

Problem 1: Assuming that spoilage loss is chargeable to the particular job, the unit cost of the good coats produced per Job No. 205 must be:

Reference no: EM132693510

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