company Problem 5. Blims Manufacturing Company manufactures different office furniture and accounts for costs using the Job Order Costing System. During the 3rd quarter of the current year, 500 tables (Job Order No. 6-210) are ordered by an international firm. The costs incurred on this job are: Direct Materials Direct Labor Manufacturing overhead P1,250 per unit 5 hours per unit @ P48.00 per hr P50 per direct labor hour Final inspection revealed that 100 tables are defective and these can be reworked requiring 2 hours a unit in addition to overhead. The 500 units are delivered and billed the customer at cost plus 40%. REQUIRED: 1. Give the entries to record the above assuming that the defective job is due to customer specification. 2. Determine the manufacturing cost per unit. Marikina Shoe Company had a production run of 10,000 pairs of quality shoes during the month of June, at the following costs per pair: Materials Labor Overhead (125% of DL) P200.00 450.00 Final inspection revealed that 50 pairs were spoiled which were sold as seconds for P20,000. The good units were then shipped to the customer at cost plus 50% mark-upon cost. 1. Assuming the spoilage is a result of internal failure, determine the manufacturing cost per good pair. Nissan Motors accepted an order for 10 units of Urvan Escapade on a job order cost system. Job 3-601 is assigned for this order. The following costs are incurred for the manufacture of the 10 unit: Materials Labor (31,250 hrs. x P40) Overhead P5,000,000 1,250,000 120% of DLC Final inspection revealed that 2 units required rework due to improper installation of lighting because of the intervention of the customer. The rework required 50 direct labor hours, overhead is applied at the normal rate and an additional lighting materials amounting to P25,000. The units are then billed to the customer at 140% above cost. 2. Compute for the billing price per unit of Urvan cian and specification of its customers, and accordingly uses non ncs for a customer at a cost of P50 100% of