eAssignment/takeAssignmentMain.do?invoker%3Dassignments&takeAssignmentSessionLocator=Dassignment-take&inprogress=false☆ 回务eBookCost of Normal Spoilage Caused by Nature of JobFrieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures thecountertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,900 and direct laborof $800. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling mustcut another piece and install it to properly complete the job. The additional rework required direct materials costing $1,400 and direct labor costing $1,100.Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Tramels. Frieling had warned them that thechosen piece could require much more care and potentially additional work. As a result, Frieling considers this spoilage to be caused by the Tramels' job.Required:1. Calculate the cost of the Tramel job.3,7402. Does a journal entry to the overhead control account need to be made?Yes3. What if the additional rework required $2,200 of direct labor? What would be the effect on the cost of the Tramel job?If the additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the Tramel job wouldby $to $47PreviousNextOEO 4) 1:22 PM%24

1) Compute the cost of the T Job. Solution: 1) Particulars Amount Direct Materials $2,900…

ng Company installs granite countertops in customers' homes. First, the customer chooses the tertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel j 300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one smal another piece and install it to properly complete the job. The additional rework required direct m me that the spoilage was due to the inherently fragile nature of the piece of stone picked out by en piece could require much more care and potentially additional work. As a result, Frieling cons uired: alculate the cost of the Tramel job. 3,740 oes a journal entry to the overhead control account need to be made? Vhat if the additional rework required $2,200 of direct labor? What would be the effect on the ce ne additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the to $

ng Company installs granite countertops in customers' homes. First, the customer chooses the tertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel j 300. Overhead is applied at the rate of 120 percent of direct labor cost. Unfortunately, one smal another piece and install it to properly complete the job. The additional rework required direct m me that the spoilage was due to the inherently fragile nature of the piece of stone picked out by en piece could require much more care and potentially additional work. As a result, Frieling cons uired: alculate the cost of the Tramel job. 3,740 oes a journal entry to the overhead control account need to be made? Vhat if the additional rework required $2,200 of direct labor? What would be the effect on the ce ne additional rework required $2,200 of direct labor rather than $1,100, then the total cost of the to $

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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Spoilage and job costing. (L. Bamber) Barrett Kitchens produces a variety of items in accordance with special job ordersfrom hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 percase: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturingoverhead rate includes a provision for normal spoilage. Consider each requirement independently.1. Assume that a laborer dropped 420 cases. Suppose part of the 420 cases could be sold to a nearby prison for $420cash. Prepare a journal entry to record this event. Calculate and explain briey the unit cost of the remaining 1,680 cases.2. Refer to the original data. Tasters at the company reject 420 of the 2,100 cases. The 420 cases are disposed of for $840.Assume that this rejection rate is considered normal. Prepare a journal entry to record this event, and do the following:a. Calculate the unit cost if the rejection is attributable to…
Haggstrom, Inc., manufactures steel fittings. Each fitting requires both steel and an alloy that allows the fitting to be used under extreme conditions. The following data apply to the production of the fittings. Direct materials per unit 3 pounds of steel at $0.55 per pound 0.5 pounds of alloy at $1.90 per pound Direct labor per unit 0.02 hours at $30 per hour Overhead per unit Indirect materials Indirect labor Utilities Plant and equipment depreciation Miscellaneous $0.60 0.75 0.55 0.90 0.70 Total overhead per unit $3.50 The plant and equipment depreciation and miscellaneous costs are fixed and are based on production of 250,000 units annually. All other costs are variable. Plant capacity is 300,000 units annually. All other overhead costs are variable. The following are forecast for year 2. Contract negotiations with the union are expected to lead to an increase in hourly direct labor costs of 4 percent, mostly in the form of additional benefits. Commodity prices, including steel,…
102.
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Harbortown Marine Products (HMP) manufactures and sells various fixtures for boat cabins. One fixture uses a specialized fitting that is not used in any other HMP product. The management of HMP has considered outsourcing the fitting for several years but has never identified a suitable supplier. HMP has collected the following data on the cost of the fitting: Materials $ 6.45 Labor 4.85 Manufacturing overhead 14.45 Total $ 25.75 Rivard Fittings, a local auto supplier, contacts HMP and tells them that because of the loss of one of Rivard's customers, there is enough capacity to produce up to 5,000 units of the fitting monthly. Rivard has offered to sell HMP any quantity (up to 5,000 units monthly) at a price of $20.15 per fitting. If Rivard supplies all of the 3,020 fittings currently produced by HMP, HMP will avoid all of the variable overhead associated with the fitting and one-third of the fixed overhead. Management estimates that variable overhead for the fitting is…
LogicCo is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. LogicCo uses the weighted-average method of process costing. Summary data for September 2020 are: (Click the icon to view the data.) Read the requirements. Requirement 1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Work done to date Physical Units Requirements 1. For each cost category, compute…
I need requirement A-C please.
Waterway has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 19,900 RecRobos is as follows: Cost Direct materials ($45 per robot) $895,500 Direct labor ($31 per robot) 616,900 Variable overhead ($8 per robot) 159,200 Allocated fixed overhead ($23 per robot) 457,700 Total $2,129,300 Waterway is approached by Cinrich Inc., which offers to make RecRobo for $83 per unit or $1,651,700. Using incremental analysis, determine whether Waterway should accept this offer under this following independent assumption: (see attachement). In attachement: see dropdown options. Please don't forget to answer: should the offer be accepted or not.
Rene is working with the operations manager to determine what the standard labor cost is for a spice chest. He has watched the process from start to finish and taken detailed notes on what each employee does. The first employee selects and mills the wood, so it is smooth on all four sides. This takes the employee 1 hour for each chest. The next employee takes the wood and cuts it to the proper size. This takes 30 minutes. The next employee assembles and sands the chest. Assembly takes 2 hours. The chest then goes to the finishing department. It takes 1.5 hours to finish the chest. All employees are cross-trained so they are all paid the same amount per hour, $14.50. A. What are the standard hours per chest? Standard hour per chest fill in the blank 1 hours B. What is the standard cost per chest for labor? Round your answer to two decimal places. Standard cost per chest $fill in the blank 2
Mighty Muffler, Inc. operates an automobile service facility that specializes in replacing mufflers on compact cars. The following table shows the costs incurred during a month when 600 mufflers were replaced. Required: Fill in the missing amounts, labeled (a) through (o), in the table.