1.) Integrity Company's Job 206 for the manufacture of 2,200 units was completed during August at the unit costs presented as follows:

Direct materials: P20

Direct labor: 18

Factory overhead (includes an allowance of P1 spoiled work): 18 Final inspection of Job 206 disclosed 200 spoiled units which were sold for P6,000.

What would be the unit cost of good units if the spoilage loss is charged to all production during August?

a. P56

b. P57.50

c. P57

d. P58.60

2.) During April, Integrity Corporation incurred the following cost of Job 21 for the 200 motors:

Original cost accumulation:

Direct materials: P1,300

Direct labor: 1,600

Factory overhead: 2,400

Direct cost of reworking 10 units:

Direct materials: P200

Direct labor: 320

Method 1 - the rework cost attributable to the exacting specification of job, the full rework cost was charged to this specific job.

Method 2 - the defective units fall within the normal range and the rework cost is not related to a specific job.

The cost per finished unit of Job 21 using Method 1 is

a. P31.20

b. P31.50

c. P26.50

d. P27.00