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a. Make journal entries to record the total cost of Job001, the spoilage and the transfer of goods to inventory account. b. Determine the unit cost for each plastic table. 3. GHI Electronic manufactures parts for computers. During the current year, 2000 parts was begun for the JKL Retailers. The costs incurred for the job are Materials Labor P 40,000 30,000 Manufacturing overhead 60,000 Before it was delivered, JKL changed the design specifications. The changed required a replacement part that cost P1 and required 10 minute soft installation on each part. The changed affected 1,000 parts manufactured. a. Prepare all the necessary journal entries until the goods are transferred to inventory account. b. Determine the unit cost for each part manufactured. 4. MNO Company produces plastic pipes to customer specifications. Losses of less than 5% are considered normal because they are inherent in the production process. The company applies overhead to product using machine hours. MNO used the following information in setting its pre-determined overhead rate for 2020: Expected overhead other than rework P 425,000 Expected rework costs 37,500 Expected machine hours 50,000 During 2020, the following production and cost date were accumulated: Total good production completed 2,000,000 feet of pipe Total defects 40,000 feet of pipe Ending inventory 75,000 feet of pipe Total cost of direct materials for Job#2 P343,550 Total cost of conversion for the Job#2 P78,875 Total machine hours for Job#2 1,540 Cost of reworking defects during 2020 P37,350 Total actual overhead cost for 2020 P431,000 Required: a. Determine the cost of Job#2 in 2020. D. Assume the rework is normal and those units can be sold for the regular selling price. How will MNO account for the 37, 750 of rework cost? C. Assume that MNO does not include rework costs in developing the overhead application rate because rework is related to specific jobs. Determine the cost of Job #2 . Using the information in c., assume that 20% of the rework cost was specifically related to 200 feet of pipe produced for Job#2. The reworked pipe can be sold for P 1.50 per foot. What is the total cost of Job #2.Problem Solving. Analyze the given problems and use the worksheet provided for your answers. 1. ABC Metals Inc sold their scrap metal to a local producer for further processing. This month's scrap sales on account total P2,500. Give the appropriate journal entry to record the sale of scrap using the following alternatives. a. The scrap sales are viewed as additional revenue. b. The scrap sales are viewed as a reduction of the cost of goods sold during the month. c. The scrap sales are viewed as reduction of manufacturing overhead control. d. The scrap sales are traceable to individual jobs and are viewed as a reduction in the cost of materials used on the jobs. 2. DEF Plastic Company uses job-order cost system to account production cost. 2,000 plastic chairs were molded and assembled on Job 001. Total cost incurred on the job is; Materials- P24,000, Labor (1,000 hrs x P10 per hour 10,000 Manufacturing overhead 20,000 It was found out that 100 units are spiled and cannot be reworked however they can be sold at P10 each. The company maintains a separate Spoiled Goods Inventory account for defective products and charges the unrecoverable cost of spoilage to Factory Overhead Control