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. Case b. Spoiled Goods. The following costs were incurred in producing 2,000 computer tables. Original cost to manufacture the units: Direct materials Direct labor Manufacturing overhead P1,320,000 1,600,000 % of direct labor Final inspection revealed that 100 units are spoiled due to customer's intervention. It was estimated that these spoiled units can be sold to a jobber for P500 each. The remaining units are then billed to customer at 120% above cost. Required: Give to entries to record the production and its completion.