1.

Under Helen of troys job order cost system, estimated costs of defective
work (considered normal in the manufacturing process) are included in the
predetermined factory overhead rate. During March, Job No. 143 for 2,000
hand saws was completed at the following costs per unit:

DM

P5

DL

FOH (applied at 150% of DL Cost)

Final inspection disclosed 100 defective saws, which were reworked at a cost
of P2 per unit for direct labor, plus overhead at the predetermined rate. The
defective units fall within the normal range. What is the total rework cost and
to what account should it be charged?
500factory overhead control

2. Cutie co.s Job 205 for he manufacture of 6,600 coats was completed during
August 2014 at the following unit costs:
Dm

P1,500

Dl

P1,000

FOH (include an allowance of 50 for spoiled work 500

Final inspection of Job 205 disclosed 600 spoiled coats which were sold too a
jobber for P600,000. Assume that spoilage loss is charged to all production
during August 2011.

What would be the total and unit cost of the good coats produced on Job 205.
..3,000 per unit,
Assuming the spoilage was charged to the customer what would be the total
and per unit cost of the good units? 3,300 ;19,800,000