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Question - Harper Company's Job 301 for the manufacture of 2,200 T-shirts was completed during August 2014 at the following unit costs: Direct Materials P20.00 Direct Labor P18.00 Factory Overhead (includes an allowance of P1 for spoiled work) P18.00 P56.00 Final inspection of Job 301 discloses 200 spoiled T-shirts which were sold to a jobber for P6,000. Assume that spoilage loss is charged to all production during August.
1. What would be the unit cost of the good units produced on Job 301?
a. P53.00
b. P55.00
c. P56.00
d. 58.00
2. Then, Assume instead, that the spoilage loss is attributable to exacting specification of Job 301 and is charged to this specific job. What would be the unit cost of the good coats produced on Job 301?
a. P55.00
b. P57.50
c. P58.60
d. P61.60
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