Assume that the defective goods were charged to all jobs, what is the cost transferred to finish goods at the end of the year? 342,000 335,000 349,740 342,500 KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured200 units coil over springs. After final inspection, it was determined that 15 units weredefective. The cost per unit to rework the defective units were the following: P100 fordirect 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 P800Direct laborP350Applied overhead 160% of direct labor cost(150% in case defective units were charged to specific order)

Cost of reworked = (Direct material + labor + overhead) x no. of units = (100+160+160*150%)*15 =…

Answered: KW Inc. manufactured coil over springs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5.Current information for the Stellar Corporation follows: $17,900 19,300 147,000 85,000 63,100 Stellar Corporation's Cost of Goods Manufactured for the year is: Beginning work in process inventory Ending work in process inventory Direct materials Direct labor Total factory overhead a. $293,700. b. $313,000. c. $295,100. d. $275,800.
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