Assume that the defective goods were charged to all jobs, what is the cost ransferred to finish goods at the end of the year? KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured 200 units coil over springs. After final inspection, it was determined that 15 units were defective. The cost per unit to rework the defective units were the following: P100 for direct materials, P160 for direct labor and the appropriate factory overhead rate. The following were the unit cost for the 200 coil over springs: Direct materials P800 Direct labor P350 Applied overhead 160% of direct labor cost (150% in case defective units were charged to specific order) 342,000 335,000 349,740 342,500
Q: Tools Company manufactures electric drills to the exacting specifications of various customers.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Near Company's Job 205 for the manufacture of 6,600 coats was completed during February at the…
A: Cost is defined as the amount incurred upon the production of goods or services to make the product…
Q: ABC Company manufactures chairs too the exacting specifications of various customers. During January…
A: The total cost of product includes the rework cost of defective product and reduces by the amount of…
Q: Fee Co. had a production run of 8,000 pairs of slacks during the last week of June, at the following…
A: 1. Particulars Units Production Cost Production cost per unit: 8,000 904,000 Material 50…
Q: Samar Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs…
A: A unit cost refers to the total expense which is incurred by the company to manufacture, store and…
Q: Items 15 and 16 are based on the following data: SOL COMPANY's Job 501 for the manufacturing of…
A: SOLUTION- SPOILAGE IS A WASTAGE OR LOSS OF MATERIAL THAT OCCURS DURING THE MANUFACTURING PROCESS.
Q: Journal entries to correct defective work. Columbus Fabricators manufacture golf carts and other…
A: Inventory- Inventory refers to the things that a business keeps on hand in order to generate income.…
Q: Blue Co.'s Job 405 for the manufacture of 2,200 wagons was completed during August at the unit costs…
A: Here in this question, we are required to calculate unit cost of goods. When spoilage loss…
Q: Gueess Aparel completed 3,600 expensive bags during the 1st quarter of the current year. The…
A: Gross profit refers to the profits of any business which is result of deduction of all costs which…
Q: War Room Company manufactures fire extinguisher per the design and specification of its customers,…
A: Gross profit rate = Gross profit / Sales Selling price per unit = Cost per unit + Gross profit per…
Q: NUBD Co. manufactures lifting equipment. One order from HFL Co. for 200 lifting equipment showed the…
A: The total cost includes direct materials, direct labor and Factory overhead cost.
Q: Big Company manufactures electric drills to the exact specifications of various customers. During…
A: JOB COSTING: It is an accounting method designed to help you track the cost of individual projects…
Q: Viber Company manufactures electric drills to the exacting specifications of various customers.…
A: Cost per unit means the cost incurred to produce one unit. Any expenses incurred to rectified the…
Q: KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured 200 units…
A: Cost of reworked = (Direct material + labor + overhead) x no. of units = (100+160+160*150%)*15 =…
Q: SitChairwn Company manufactures chairs to the exacting specifications of various customers. During…
A: It is assumed that all these were normal losses.
Q: Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of…
A: The Machine has no use if U98 is purchased from an outside market. Therefore, the cost of…
Q: Near Company's Job 205 for the manufacture of 6,600 coats was completed during February at the…
A: Job costing is a method and type of costing in which all types of costs are assigned and accumulated…
Q: NUBD Co. manufactures lifting equipment. One order from HFL Co. for 200 lifting equipment showed the…
A: The overhead rate is applied on the basis of predetermined overhead rate.
Q: Miracles Manufacturing Co. manufactures a lifting equipment. One order from Heaven Company for…
A: Cost of goods manufactured comprises of all such costs which have been allocated to total…
Q: What is the unit cost of the goods transferred to storeroom if the rework costs are charged to the…
A:
Q: Zea Company’s Job 888 manufactured 13,750 units that were completed in February at unit costs…
A: Unit cost of good units = (Total cost incurred - Realizable value of spoiled units) / No. of good…
Q: La Trinidad Metal Shop, manufactures metal products that require casting, such as engine blocks,…
A: Given information, Materials= P276,000 Labor (6,000hrs @ P14 per hour)= P84,000 factory overhead…
Q: ProInc, has completed the Job 101, containing 2,200 shoes, during 2016 at the following unit costs:…
A: Introduction In job costing if there is an spoilage which is normal then such spoilage is commonly…
Q: Miracles Manufacturing Co. manufactures a lifting equipment. One order from Heaven Company for…
A: Solution Unit cost is a total expenditure incurred by a company to produce , store and sell one unit…
Q: SONA Co. received an order for 1,000 units of item AY-14. Because of the order’s exacting…
A: Cost per unit of finished product = Total cost / good Qty produced Total cost (in the given case) =…
Q: A job order for 500 units of children's party giveaways were processed with costs of P80,000 and…
A: Introduction: Cost of goods sold: Cost of goods sold can be defined as the production cost incurred…
Q: For numbers 6 to 8 Best Curtains, Inc. spent P350,400 including applied overhead on a job order of…
A: The sale proceeds of defective goods reduces the total cost of manufacture.
Q: Cycle Gear Corporation has Incurred the following costs on job W456, an order for 20 special…
A: Cost accounting process is the method that is used to know the different types of the cost related…
Q: Jack Company's production report for Job #901 showed that 5 vehicle parts out of 100 vehicle parts…
A: Job costing is a method of costing that is designed to keep a track of the cost, of individual…
Q: Barnabal Company's Job 205 for the manufacture of 6,600 coat was completed during August 2016 at the…
A: The question is based on the concept of Cost Accounting.
Q: Big Company manufactures electric drills to the exact specifications of various customers. During…
A: Job costing is a method of costing in which all costs are assigned and calculated on the basis of…
Q: During March, Mark Company incurred the following costs on Job 209 for the 200 motors: Original cost…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Harper Company's Job 301 for the manufacture of 2,200 T-shirts was completec during August 2014 at…
A: SOLUTION- SPOILAGE IS A UNUSABLE MATERIAL THAT IS PRODUCED AS A PART OF THE MANUFACTURING PROCESS.
Q: NIKE Inc. has completed the Job 101, containing 1,100 shoes, during 2016 at the following unit cost:…
A: Job costing, instead of operation costing, would be a way to record the costs of a production job. A…
Q: Mcfarlain Corporation is presently making part U98 that is used in one of its products. A total of…
A: Differential Analysis:- It is a management accounting technique in which one examines only the…
Q: KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured 200 units…
A: Cost of reworked = (Direct material + labor + overhead) x no. of units = (100+160+160*150%)*15 =…
Q: Luke Co. completed 3,600 expensive ladies bags during the last quarter of the current year. The…
A: As multiple independent questions are posted, the solution for the first question would be provided.…
Q: During August of the current year, Job 067 for 2,000 handsaws was completed at the following cost…
A: Cost per unit means the cost incurred to produce one unit. Any expenses incurred to rectified the…
Q: GYM Machine Shop manufactures jacks equipment. One order comes from Muscle, Inc. for 2,000 jacks,…
A: GYM Machine shop manufactures jacks equipment. One order comes from Muscle Inc. = 2000 jacks Cost…
Q: Harper Company's Job 301 for the manufacture of 2,200 T-shirts was completed during August 2014 at…
A: Total cost of spoiled 200 t-shirts = 200 x P56 = P11,200 The spoiled T-shirts sold to jobber at…
Q: The STU Company manufactures toys. One order from Mr. ABC for 5, 000 units showed the following…
A: 1. Cost of unit produced if the rework cost is charged to customer Particulars Amount Direct…
Q: Martin Company received an order for 25 automatic mixing machines. Because ofthe order's exacting…
A: Completed units are ones that have been finished in terms of raw materials, labor, and production…
Q: Big Company manufactures electric drills to the exact specifications of various customers. During…
A: Job costing is a method of costing in which all costs are assigned and calculated on the basis of…
Q: Jacob Manufacturing Corp's Job 402 for the manufacture of 2,000 coats, which was completed during…
A: The question is based on the concept of cost accounting.
Q: Pharoah Corp. received an order for 25 automatic mixing machines. Because of the order's exacting…
A: The question is related to determination of unit cost of Completed units. The details of cost per…
Q: P Foundry Inc. manufactures custom metal products that require casting, such as engine blocks,…
A:
Q: During March, Mark Company incurred the following costs on Job 209 for the 200 motors: Original cost…
A: Factory overhead for reworked units=Direct labor×Factory overhead's original costDirect labor…
Q: system. In March 2022, it finished 10,000 pieces for a customer at a cost of P50.00 per unit for…
A: in costing the job order costing takes into consideration the cost and revenue that are associated…
Q: Cycle Gear Corporation has incurred the following costs on job W456, an order for 20 special…
A: In job costing, whenever material is required to complete specific job, it is withdrawn form the…
Step by step
Solved in 2 steps
- Lloyd Industries manufactures electrical equipment from specifications received from customers. Job X10 was for 1,000 motors to be used in a specially designed electrical complex. The followingcosts were determined for each motor: At final inspection, Lloyd discovered that 33 motors did not meet the exacting specifications established by the customer. Anexamination indicated that 18 motors were beyond repair andshould be sold as spoiled goods for 75 each. The remaining15 motors, though defective, could be reconditioned as first-qualityunits by the addition of 1,650 for materials, 1,500 for labor, and1,200 for factory overhead. Required: Prepare the journal entries to record the following: 1. The scrapping of the 18 motors, with the income from spoiledgoods treated as a reduction in the manufacturing cost of thespecific job. 2. The correction of the 15 defective motors, with the additionalcost charged to the specific job. 3. The additional cost of replacing the 18 spoiled motors with newmotors. 4. The sale of the spoiled motors for 75 each. 5. If the reconditioned motors sell for 400 each, is Lloyd betteroff reconditioning the defective motors or selling them as isfor 75 as spoiled goods?Walloon Company produced 150 defective units last month at a unit manufacturing cost of 30. The defective units were discovered before leaving the plant. Walloon can sell them as is for 20 or can rework them at a cost of 15 and sell them at the regular price of 50. What is the total relevant cost of reworking the defective units? a. 2,250 b. 3,000 c. 4,500 d. 6,750During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. What if Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adjusted for this condition.
- One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells for 149. The cost of each Slam consists of: Job 100 produced 100 Slams, of which six were spoiled and classified as seconds. Seconds are sold to discount stores for 50 each. Required: 1. Under the assumption that the loss from spoilage will be distributed to all jobs produced during the current period, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units. 2. Under the assumption that the loss due to spoilage will be charged to Job 100, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units.ABC Company manufactures chairs to the exacting specifications of various customers. During January 2020, Job 123 for the production of 1,100 chairs was completed at the following costs per unit: Direct materials P10 Direct labor Applied factory overhead Total 12 P30 Final inspection of Job 123 disclosed 50 defective units and 100 spoiled units. The defective chairs were reworked at a total cost of P500, and the spoiled chairs were sold to a jobber for P1,500. What would be the unit cost of the good units produced on Job 123?SitChairwn Company manufactures chairs to the exacting specifications of various customers. During January 2020, Job 023 for the production of 1,100 was completed at the following costs per unit: Direct Materials 10 Direct Labor 8 Applied Factory Overhead 12 Final Inspection of the order dislosed 50 defective units and 100 spoiled units. The defective chairs were reworked at a total cost of $50 and the spoiled chairs were sold toa jobber for $150. What would be the unit cost of the good units produced?
- Big Company manufactures electric drills to the exact specifications of various customers. During April 2020, Job 403 for the production of 1,100 units was completed at the following costs per unit: DIRECT MATERIALS P10 DIRECT LABOR 8 APPLIED FACTORY OVERHEAD 12 TOTAL P30 Final inspection of Job 403 disclosed 50 defective units and 100 spoiled units. The defective units were reworked at a total cost of P500, and the spoiled units were sold to an employee for P1,500. What would be the unit cost of the good units produced on Job 403? SOLUTION MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WILL ALSO BE GOOD!ABC Company manufactures chairs to the exacting specifications of various customers. During January 2020, Job 123 for the production of 1,100 chairs was completed at the following costs per unit: Direct materials P10 Direct labor 8 Applied factory overhead Total 12 P30 Final inspection of Job 123 disclosed 50 defective units and 100 spoiled units. The defective chairs were reworked at a total cost of P500, and the spoiled chairs were sold to a jobber for P1,500. What would be the unit cost of the good units produced on Job 123? a. 32 b. 29.09Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 16,400 units of the part that are needed every year. Per Unit Direct materials $ 3.60 Direct labor $ 4.30 Variable overhead $ 7.30 Supervisor's salary $ 8.00 Depreciation of special equipment $ 8.60 Allocated general overhead $ 5.60 An outside supplier has offered to make the part and sell it to the company for $32.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $22,400 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the financial impact of buying part…
- Recher Corporation uses part Q89 in one of its products. The company's Accounting Department reports the following costs of producing the 8,200 units of the part that are needed every year. Per Unit Direct materials $ 7.60 Direct labor $ 4.30 Variable overhead $ 8.50 Supervisor's salary $ 3.30 Depreciation of special equipment $ 2.80 Allocated general overhead $ 1.50 An outside supplier has offered to make the part and sell it to the company for $28.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,600 of these allocated general overhead costs would be avoided. In addition, the space used to produce part Q89 could be used to make more of…Penagos Corporation is presently making part Z43 that is used in one of its products. A total of 5,000 units of this part are produced and used every year. The company's Accounting Department reports the following costs of producing the part at this level of activity: Direct materials. Direct labor Variable overhead Supervisor's salary Depreciation of special equipment Allocated general overhead An outside supplier has offered to produce and sell the part to the company for $20.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $4,000 of these allocated general overhead costs would be avoided. If management decides to buy part Z43 from the outside supplier rather than to…Complete this question by entering your answers in the tabs below. Required A Required B Which alternative should the company choose? The total cost of the "make" alternative is by Therefore, the company should the part.