Assume that spoilage loss is charged to all production, Accounting Basics

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Assume that spoilage loss is charged to all production

Harper Company's Job 501 for the manufacture of 2,200 coats was completed during August at the unit costs presented as follows. Final inspection of Job 501 disclosed 200 spoiled coats, which were sold to a jobber for $6,000.

Direct materials	$20
Direct labor	18
Factory overhead (which includes an allowance of $1 for spoiled work)	18
	$56

Assume that spoilage loss is charged to all production during August. What would be the unit cost of the good coats produced on Job 501?

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Accounting Basics: Assume that spoilage loss is charged to all production

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Accounting Basics: Assume that spoilage loss is charged to all production

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