Heavy load fabricators, inc.

manufactures 200 custom-designed trailers as job 901 to meet design

requirement specified by the customer haul it rentals corporation. Costs charged to job 901 are:

Materials 100,000

Labor ( P10 per hour x 2,000 hours) 20,000

Applied factory overhead (P40 per direct labor hour) 80,000

Total cost charged to job 901 200,000

Before the trailers are shipped, the customer decides