Subject: Cost Accounting

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CoursHeroTranscribedText: 11. Gumamela Mgf. Co. started 150 units in process on job order no. 13. The prime costs placed in process consisted of P30,000 and P18,000 for materials and direct labor, respectively, and a pre-determined rate was used to charge factory overhead to production at 133-1/3% of the direct labor cost. Upon completion of the job order, units equal to 20% of the good output were rejected for failing to meet strict quality control requirements. The company sells rejected units as scrap at only 1/3 of production cost and bills customers at P150% of production cost. If the rejected units were ascribed to company failure, how much will be the billing price of job order no. 13? 12. Using the same information in no. 11, and assuming that the rejected units were ascribed to customer action, how much will the billing price be