metal Shop Inc., manufactures metal products that require casting, such as engine blocks, pistons, and engine housings. During the current year, an order of 30,000 custom housing was begun on job number 202 for Mr. German. After the job was completed, the housing was inspected and 4% of the units were determined to be defective. Mr. German agreed to accept the goods units only at 140% of cost. The spoiled units can be sold as seconds for P15 each. Spoiled goods are kept in an inventory account separate from finished goods.

Total costs charged to job number 202 are

Materials 276,000

Labor (6,000 hours x P14 per hour) 84,000

Factory overhead (P30 per labor hour) 180,000

1. If the spoilage units are the result of an internal failure, what is the unit cost of goods units?

2. If the spoilage is attributable to Job 202 only, what is the unit selling price of the goods units?