Ail Company has a job order for 500 units of tables were processed with costs of $80,000
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Question:
Ail Company has a job order for 500 units of tables were processed with costs of $80,000 and $30,000 for direct materials and direct labor, respectively. Factory overhead was applied at 50% of direct labor cost which excludes a 5% provision for spoilage. Prior to the transfer to the storeroom, 25 units were found to be spoiled with an estimated market value of $50 per unit.
a. How much is the unit cost of the goods transferred to storeroom if the loss is charged to total production?
b. How much is the unit cost of the goods transferred to storeroom if the rework costs are charged to the specific job?
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