outhwest toys manufacturers gloves at its San Francisco facility. The company uses job costing and provides you with the following information regarding operations for April 2020: Data table Total globes manufactured 35000 Globes rejected as spoiled units 850 Total manufacturing costs $700000 Requirements 1. What is the unit cost of making the 35000 globes? 2. What is the total cost of the 850 spoiled units? 3. If the spoilage is co sided normal, what is the increase in the unit cost of good gloves manufactured as a result of the spoilage?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Southwest toys manufacturers gloves at its San Francisco facility. The company uses job costing and provides you with the following information regarding operations for April 2020: Data table Total globes manufactured 35000 Globes rejected as spoiled units 850 Total manufacturing costs $700000 Requirements 1. What is the unit cost of making the 35000 globes? 2. What is the total cost of the 850 spoiled units? 3. If the spoilage is co sided normal, what is the increase in the unit cost of good gloves manufactured as a result of the spoilage? 4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred.                                                                  Data Table
Total globes manufactured
35,000
Globes rejected as spoiled units
850
Total manufacturing cost
$700,000
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