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Question - Covido Inc. manufactures laptop accessories. During the month of February, XYZ computer store ordered 1,000 accessories. The contract price is P 500 per accessory.
Materials P15,000
Labor 5,000
Applied Factory Overhead 3,000
Total P23,000
Before the delivery of various accessories, XYZ computer store requested for additional safety lock on the laptop. The additional specification requires for rework for additional cost is P 4,000.
REQUIRED - What are the necessary journal entries for this problem?
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