Name: Maricar S.

Roque Section BSA-2A

Little Mermaid Company

1 Charged to specific job

a. Work in process 2,440,000.00
Materials 1,000,000.00
Payroll 600,000.00
FO Applied (20,000 x 150%) 840,000.00

b. Work in process 122,000.00

Materials 1,000,000.00
Payroll 600,000.00
FO Applied (600,000 x 150%) 900,000.00

c. Spoiled Goods 8,000.00

Work in Process 8,000.00

d. Finished Goods 2,554,000.00

Work in Process 2,554,000.00

2 Charged to all production (FO rate should be 160% of direct labor cost)

a. Work in process 2,500,000.00

Materials 1,000,000.00
Payroll 600,000.00
FO Applied (20,000 x 160^) 32,000 900,000.00

b. FO Controll 125,000.00
Materials 50,000.00
Payroll 30,000.00
FO Applied 30,000x150 45,000.00

c. Spoiled Goods 8,000.00

Finished goods 2,000.00
Work in process 20x500 10,000.00

d. Finished Goods 2,490,000.00

Work in Process 2,490,000.00

3 Method used is charged to specific job Total Per Unit

 Original Cost 5000 units 2,440,000.00 488.00
Additional Cost-Defective 122,000.00 24.40
2,562,000.00 512.40
Spoiled - 20.00 - 8,000.00 0.45
Net 4,980.00 2,554,000.00 512.85
Divide by 4,980.00
Cost per Unit 512.85

Increase in unit cost due to spoiled units

Cost 512.40x20 10,248.00
Selling Price 8,000.00
Loss 2,248.00
Divide by 4,980.00
0.45

Method used is charged to all production

Original Cost 5000 unit 2,500,000.00

Spoiled -20 - 10,000.00
Net 4980 2,490,000.00
Divide by 4,980.00
Cost per Unit 500.00