(L. Bamber) Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. Q. Refer to the original data. Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a journal entry to record this event and do the following: a. Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job.
(L. Bamber) Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently.
Q. Refer to the original data. Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a
a. Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job.
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