Sheba, Inc. produces custom-made winter coats for pets. During December, management determined the following facts all relating
Question:
Sheba, Inc. produces custom-made winter coats for pets. During December, management determined the following facts all relating to Job 22:
Total production 300 jackets
Abnormal spoilage 16 jackets
Abnormal defective units 4 jackets
Normal spoilage 10 jackets
Normal defective units 2 jackets
Salvage value for spoiled units P 5 per jacket
Cost to rework defective units:
Materials P 18
Direct labor 25
Applied factory overhead 5
Scrap materials were sold for a total of P35. It costs P20 to dispose of waste materials. Total production costs were calculated to be P7,500.
Required:
Prepare entries to record the above information under job order costing. Assume the factory overhead application rate ignores normal spoilage, rework costs, and resale value of scrap.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill