Ex. 6-6. Production losses Case a. Internal failure. Evergreen Manufacturing Company started 1,500 units in process on job order #2003. The prime cost placed in process consisted of P300,000 and P180,000 for materials and direct labor, respectively, and a predetermined rate was used to charge factory overhead to production at 133- 1/3% of direct labor cost. Upon completion of the job order, 100 units were rejected for failure to meet strict quality control requirements. The company bills customers at 50% above cost but sells rejected units at only 1/3 of production cost. REQUIRED: Give the entries to record the following: 1) The cost of production 2) To record the completion of the job assuming the rejected units is ascribed to a company failure which is normal. Case b. Internal failure. The following costs were incurred in producing 2,000 units of computer tables. Cost accumulation: Direct materials Direct labor Manufacturing overhead (150% of DL cost) P1,320,000 1,600,000 100 units were discovered defective and the cost to correct the units are as follows: Direct materials Direct labor P20,000 32,000 Overhead is applied at the same rate The computer tables are then billed to customer at 60% above cost. Required: Entries to record the above from production up to its completion