Creasy Company uses a job order cost system.

The following transactions were completed in

January, which was the first month of operations:
 Received direct materials and supplies costing P 20,000.
 Materials and supplies were requisitioned as follows:
Direct materials
Job no. 1 P 3,000
Job no. 2 4,000
Job no. 3 1,000 P 8,000
Indirect materials 1,000

Factory payroll was distributed as follows:

Direct labor
Job no. 1 (200 hours) P 2,000
Job no. 2 (300 hours) 3,000
Job no. 3 (400 hours) 4,000 P 9,000
Indirect labor 2,000

 Other indirect manufacturing cost totaled P 3,000.

 Indirect manufacturing costs are applied on the basis of direct labor hours.

The budget for 2015 included 9,000 direct labor hours and a total overhead budget of P
63,000.

1. Factory overhead applied amounted to:

a. P 4,800
b. P 6,300
c. P 4,200
d. P 7,200

2. Refer to the data above, the ending balance of materials inventory is:
a. P 9,000
b. P 7,000
c. P 5,000
d. P 11,000

3. Overhead was:
a. Overapplied by P 300
b. Overapplied by P 500
c. Underapplied by P 300
d. Underapplied by P 700

During January 2015, Bill Company incurred the following cost on Job 222 for the manufacture of 900
units:
Original cost of accumulation:
Direct materials P 34,800
Direct labor 20,000
Manufacturing overhead (140% of direct labor) 28,000
 P 82,800
Direct cost of reworked 30 units:
Direct materials P 1,200
Direct labor 1,000
P 2,200

The rework costs were attributable to exacting specification of Job 222, and the full rework costs
were charged to the specific job. The cost per finished unit of Job 222 was:
a. P 92
b. P 93
c. P 94
d. P 96

Tampa Company manufactures products based on customer’s exacting specifications. In May 2015, Job
789 was opened to produce 2,200 units. Job 789 was completed at the following unit cost:
Direct materials P 50
Direct manufacturing labor 40
Allocated manufacturing overhead 60
Total P 150

During the final inspection of Job 789, it was revealed that 100 units were defective and 40 units were
spoiled. The defective units were reworked at a total cost of P 16,000 while the spoiled units were sold
to a jobber for P 2,000.

How much is the unit cost of the goods produced on Job 789?
a. P 150
b. P 156
c. P 157
d. P 159