Reference no: EM133129920

Questions -

Q1. 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?

Q2. Accounting Apparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:

Direct materials P200

Direct labor P180

Factory overhead, including P10 allowance for spoilage P180

Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.

If spoilage is due to customer's intervention, how much is the total gross profit on the order?