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Problem - Tripple A Company manufactures fire extinguisher per the design and specification of its customers, and accordingly uses a job order cost system. In March 2017, it finished 50,000 pieces for a customer at a cost of P1,500 per unit for direct materials and P1,000 per unit for conversion costs. The production incurred 500 defective units due to an error in the specification made by the customer and had to be reworked at a cost of P200 per unit. No allowance for rework is included in the budgeted overhead. If Surefire wants to maintain a 30% s profit rate, how much is the sales price of the order?
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