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: 10 Units Were Sub-standard Due To Internal Failure And Are To Be Rework. The Rework Cost Per Unit: Direct Materials P1,500 Direct Labor 500 Factory Overhead 500 P2,500 How Much Is The Amount Charged To The Work-in Process For The Rework?

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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: 10 units were sub-standard due to internal failure and are to be rework. The rework cost per unit: Direct materials P1,500 Direct labor 500 Factory overhead 500 P2,500 How much is the amount charged to the Work-in process for the rework?

- August 24, 2022 - Edwin Tunner

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: 10 units were sub-standard due to internal failure and are to be rework.

The rework cost per unit:

Direct materials P1,500

Direct labor 500

Factory overhead 500

P2,500

How much is the amount charged to the Work-in process for the rework?

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