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QUESTION 8 (4 marks) PVW Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. During the month of
QUESTION 8 (4 marks) PVW Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. During the month of September, an order (Job x2) by a customer comprised 5,000 units of the product; manufacturing cost is $5.00 per unit. The processing of this job, however, resulted in spoilage of 400 units, considered normal with no disposal value, attributable to this specific job. Required: (a) How will you account for the above transaction, for example, in a journal entry? (2 marks) (b) Determine the unit cost showing computations. (2 marks) units Saw hits
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