Question
LOL Comp.'s Job C manufacture 7,000 units that were completed in July at unit costs presented as follows: Direct Materials 200 Direct Labor 170 Factory
LOL Comp.'s Job C manufacture 7,000 units that were completed in July at unit costs presented as follows:
Direct Materials 200
Direct Labor 170
Factory OH (excluding allowance of 10 for spoiled work) 125
The final inspection of Job C disclosed 250 spoiled units, which were sold for 30,000.
What would be the selling price per unit if the spoilage is:
a. common to Job C
b. customer's change in specification
Lol Company maintains a 60% mark-up on cost.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
