COST OF QUALITY

E-6 Belveder Metal Shop manufactures metal products that require casting, such as engine tilocks, pistons, and eagine housing. During the current period, an order for 10,000 custom housing was begun on job number 2608 for Atlas Auto Supply Co. After completion, the housings were inspected and 400 units were determised to be defective. The customer agreed to accept only the remaining 9,600 good units instead of the quantity originally ordered. The defective units are beyond repair but can be sold as seconds for P15 each. A separate account for Spoiled Goods. are kept for control purpose. Total costs cnarged to job Requir 11. If defectiverunits are cnused by internal failure: aa Jounmed emuies to record the transaction at the time of production up to the time wher the goods were sold to the customer. b3. Compure the wnit cost of goods sold. 2. If defective units are result of rigid customer's specifications: a.t. Jourcal eatries to record the transaction at the time of production up to the time when the goods were sold to the customer. b. Compute the unit cost of goods sold