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B enguet Inc. produces two brands of coffee: Star and Sun. These are produced in one factory Using the same process except for the cost

Benguet Inc. produces two brands of coffee: Star and Sun. These are produced in one factory

Using the same process except for the cost of the direct materials, roasted beans, which is P40 per pound for Star and P60 for Sun. The following data are given for the month of March 2021:

Star Sun Total
Number of pounds produced 5,000 3,000 8,000
Direct Labor P250,000
Indirect Materials 30,000
Other Overhead 50,000

Benguet uses operation costing and assigns conversion costs based on the number of pounds

produced for each brand. Compute the unit cost of each brand produced in March. Regular selling price of each is P1,000 per packfor Star and P1,200 per pack for Sun. A pack weighs 10 pounds. A GPR of 15 % is considered adequate. Is it still adequate for each brand?

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