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B Company manufactures chairs to the exacting specifications of various customers. During January 2020, Job 123 for the production of 1,100 chairs was completed at the following costs per unit:
Direct materials P10Direct labor 8Applied factory overhead 12Total 30
Problem 1: Total Final inspection of Job 123 disclosed 50 defective units and 100 spoiled units. The defective chairs were reworked at a total cost of P500, and the spoiled chairs were sold to a jobber for P1,500. What would be the unit cost of the good units produced on Job 123?
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