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Asus Company is engaged in printing and publishing. Printing jobs are priced at cost plus 60% . Job C11 involved printing 600 wedding invitations with
Asus Company is engaged in printing and publishing. Printing jobs are priced at cost plus 60% . Job C11 involved printing 600 wedding invitations with the following costs: Direct Materials P360 Direct Labor 90 Overhead 120 Total. P570 === Upon inspection, 75 invitations were ruined due to employee error and had to be discarded. Additional 75 invitations were printed to complete the job. Required: 1. Calculate the cost of the spoiled invitations. How should the spoilage cost be accounted for? 2. What is the price of Job C11? 3. Suppose that another job, D22 also required 600 wedding invitations. The costa are identical to tose of Job C11. However, Job D22 required an unusual color of ink that could only be obtained in a formula that was difficult t to use. Asus Company know from experience that getting this ink color to print correctly requires trial and error. In the case of Job D22, the first 50 invitations had to be discarded due to inconsistencies in the color of the ink. What is the cost of the spoilage and how would it be treated? 4. What is the price of Job D22
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