Zozibini Company completed 5,000 units of customized souvenir items. The product cost per unit: Direct materials P75 Direct labor 60 Factory overhead 45 P180 However, upon quality inspection, 60 units were found to be spoiled. The spoiled/damaged goods are sold for P7,200. The spoilage is due to the employee's fault. Finished goods - beginning balance is P257,300 The cost of goods sold is 903,800 How much is the ending balance of finished goods inventory?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15P: One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells...

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Lloyd Industries manufactures electrical equipment from specifications received from customers. Job X10 was for 1,000 motors to be used in a specially designed electrical complex. The followingcosts were determined for each motor: At final inspection, Lloyd discovered that 33 motors did not meet the exacting specifications established by the customer. Anexamination indicated that 18 motors were beyond repair andshould be sold as spoiled goods for 75 each. The remaining15 motors, though defective, could be reconditioned as first-qualityunits by the addition of 1,650 for materials, 1,500 for labor, and1,200 for factory overhead. Required: Prepare the journal entries to record the following: 1. The scrapping of the 18 motors, with the income from spoiledgoods treated as a reduction in the manufacturing cost of thespecific job. 2. The correction of the 15 defective motors, with the additionalcost charged to the specific job. 3. The additional cost of replacing the 18 spoiled motors with newmotors. 4. The sale of the spoiled motors for 75 each. 5. If the reconditioned motors sell for 400 each, is Lloyd betteroff reconditioning the defective motors or selling them as isfor 75 as spoiled goods?
V Company completed 375 units of customized jewelry. The product cost per unit: Direct materials P8,750 Direct labor 600 Factory overhead 1,200 10,550 However, upon quality inspection, 10 units were found to be spoiled. The spoiled goods are sold for P76,300. The spoilage is due to customer's preferences. All good items and spoiled items are sold.…
Jimin Company completed 5,200 units of customized souvenir items. The product cost per unit: Direct materials P50 Direct labor 80 Factory overhead 60 P190 However, upon quality inspection, 50 units were found to be spoiled. The spoiled/damaged goods are sold for P6,000. The spoilage is due to the employee's fault. How much is the amount charged to factory overhead control?
Legacy Company completed 200 units of customized jewelry. The product cost per unit: Direct materials P7,500 Direct labor 2,500 Factory overhead 2,500 P12,500 However, upon quality inspection: 2 units were sub-standard due to internal failure and sold immediately for an amount of P15,000. How much is charged to factory overhead control due to spoiled goods?
Guess Apparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:Direct materials P200Direct labor 180Factory overhead, including P10 allowance for spoilage180 Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed thecustomer at 20% gross profit.1. If the spoilage is common to all jobs, the amount billed to the customer is_____________2. If spoilage is due to customer’s intervention, how much is the gross profit on theorder? _______________
Gueess Aparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:Direct materials P200Direct labor P180Factory overhead, including P10 allowance for spoilage P180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.If spoilage is due to customer’s intervention, how much is the total gross profit on the order?
Accounting Apparel completed 3,600 expensive bags during the 1st quarter of the current year.  The following costs per unit are presented below:Direct materials P200Direct labor P180Factory overhead, including P10 allowance for spoilage P180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.If the spoilage is common to all jobs, the amount billed to the customer is:
Accounting Apparel completed 3,600 expensive bags during the 1st quarter of the current year.  The following costs per unit are presented below:Direct materials P200Direct labor P180Factory overhead, including P10 allowance for spoilage P180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.If spoilage is due to customer’s intervention, how much is the total gross profit on the order?
Catriona Company completed 300 units of customized jewelry.       The product cost per unit:                                                  Direct materials                               P8,400                                      Direct labor                                       500                              Factory overhead                            750                                                                                             P9,650                                      However, upon quality inspection, 20 units were found to be spoiled.             The spoiled goods are sold for P138,400.        The spoilage is due to customer's preferences.                                                    All good items and spoiled items are sold.                                                                                                                                      How much is the product cost per unit?
Guess Apparel completed 3,600 expensive bags during the 1" quarter of the current year. The following costs per unit are presented below: Direct materials Direct labor P200 180 180 Factory overhead, including P10 allowance for spoilage Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed the customer at 20% gross profit 6. If the spoilage is common to all jobs, the amount billed to the customer is 7. spoilage is due to customer's intervention, how much is the gross profit on the order?
Jubilee Company completed 1,000 customized apparel. The product cost per unit: Direct materials P300 Direct labor 200 Factory overhead 100 P600 However, upon quality inspection, 50 units were sub-standard due to internal failure and are to be rework. The rework cost per unit of the prime costs are: Direct materials 30 Direct labor 20…
Zumiez Company produces a small standard component in a process operation. 25. There is a quality control check at the end of processing, and items which fail the check are sold as scrap for P2.80 per unit. The expected rate of rejection is 10%. Normal loss is not given any cost, except that whatever scrap value it has is credited to the process account. The cost of abnormal loss, net of scrap value, is written off to the profit and loss account. Data for April 2015 are as follows: Materials 4,000 units P16,000 Conversion costs 24,000 Output to finished goods 3,000 units Assuming there were no work in process at the beginning and end of the month, what was the full cost of the finished output that passed the quality control check? P32,400 a. b. P33,333 C. P36,000 d. P38,880

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