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At the beginning of 2021, Smith Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products:
Theoretical annual capacity 4,000
Actual production 3,600
Production hours available 2,000
Conversion cost per hour P28
Problem 1: What is the ideal conversion cost per unit?
a. P50.90 per unit
b. P56.00 per unit
c. P14.0 per unit
d. P15.55 per unit
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