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 external 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?

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 external 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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