Reference no: EM133129906
Questions -
Q1. Darlene, Inc. manufactures item "B500" per the design and specification of its customers, and accordingly uses the job order costing system. In March 2022, it finished 10,000 pieces for a customer at a cost of P50.00 per unit for direct materials and P40.00 per unit for direct labor. Factory overhead is applied at 100% of direct labor cost. The production incurred 500 defective units due to an error in the specifications made by the customer and that had to be reworked at a direct labor cost of P10.00 per unit.
If the customer is billed at 25% above cost, how much is the billing price?
Q2. War Room Company manufactures fire extinguisher per the design and specification of its customers, and accordingly uses a job order cost system. In March 2015, 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 War Room wants to maintain a 30% gross profit rate, how much is the selling price per unit?
Q3. On January 1, there were two jobs in process at Worship Printing Company. Details of the jobs are:
Job A-15: DM - 8,700; DL - 3,200
Job A-38: DM - 1,600; DL - 4,200
Materials inventory at January 1 totaled P46,000 and P5,800 in materials were purchased during the month. A requisition for P800 in supplies was filed. On January 1, finished goods inventory consisted of two jobs: Job No. A-07 costing P19,600 and Job No. A-21 costing P7,900. Both jobs were sold during the month. Also during January, Job Nos. a-15 and A-38 were completed. Completing Job No. A-15 required additional P3,400 in direct labor and P1,500 in direct materials. The Job No. A-38 completion costs included an additional P5,400 in direct materials and P10,000 in direct labor. Job No. A-40 was started during the period but was not finished. A total of P15,700 of direct materials were brought from the storeroom during the period and total direct labor costs for the period amounts to P20,400. Factory overhead was applied at 150% of direct labor costs to all of the jobs.
What is the cost of job completed in January?