19. Under HERMIE COMPANY's job order cost system, estimated costs of defective work (considered normal in the manufacturing process are included in the predetermined factory overhead rate. During March, Jon No. 210 for 2,000 handsaws was completed at the following costs per unit: Direct maerials 5 Direct labor 4 Factory overhead (applied at 150% of direct labor cost) 6 15 Final inspection disclosed 100 defective saws, which were reworked at a cost of P 2 per unit for direct labor plus overhead at the predetermined rate. The defective units fall with in the normal range. What is the toal rework cost and to what account should it be charged? A P 200 to work-in-process B P 200 to factory overhead control C P 500 to work in prcoess D P 500 to factory overhead control
19. Under HERMIE COMPANY's job order cost system, estimated costs of defective work (considered normal in the manufacturing process are included in the predetermined factory overhead rate. During March, Jon No. 210 for 2,000 handsaws was completed at the following costs per unit: Direct maerials 5 Direct labor 4 Factory overhead (applied at 150% of direct labor cost) 6 15 Final inspection disclosed 100 defective saws, which were reworked at a cost of P 2 per unit for direct labor plus overhead at the predetermined rate. The defective units fall with in the normal range. What is the toal rework cost and to what account should it be charged? A P 200 to work-in-process B P 200 to factory overhead control C P 500 to work in prcoess D P 500 to factory overhead control
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:53
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19. Under HERMIE COMPANY's job order cost system, estimated costs of defective work (considered normal in the
manufacturing process are included in the predetermined factory overhead rate. During March, Jon No. 210 for
2,000 handsaws was completed at the following costs per unit:
55
56
57
Direct maerials
58
Direct labor
4
59
70
71
72
73
74
Factory overhead (applied at 150% of direct labor cost)
6.
15
Final inspection disclosed 100 defective saws, which were reworked at a cost of P 2 per unit for direct labor plus
overhead at the predetermined rate. The defective units fall with in the normal range.
75
76
What is the toal rework cost and to what account should it be charged?
A P 200 to work-in-process
B P 200 to factory overhead control
C P 500 to work in prcoess
D P 500 to factory overhead control
78
79
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