PART 4 Quest Company manufactures electric drills to the exacting specifications of various customers. During April 2019, job 403 to produce 1,100 drills was completed at the following costs per unit: $ 20 $ 16 $24 $ 60 Final inspection of job 403 disclosed 100 spoiled units. The spoiled drills were sold for $ 1,500. Direct materials Direct labor Applied overhead Total Required: Prepare the necessary journal entry (if any) to account for the spoilage (1) assuming the spoilage is attributable to job 403. 2) assuming the spoilage is attributable to all jobs.

PART 4 Quest Company manufactures electric drills to the exacting specifications of various customers. During April 2019, job 403 to produce 1,100 drills was completed at the following costs per unit: $ 20 $ 16 $24 $ 60 Final inspection of job 403 disclosed 100 spoiled units. The spoiled drills were sold for $ 1,500. Direct materials Direct labor Applied overhead Total Required: Prepare the necessary journal entry (if any) to account for the spoilage (1) assuming the spoilage is attributable to job 403. 2) assuming the spoilage is attributable to all jobs.

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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Schedule of Activity Costs Quality Control Activities Process audits $48,300 Training of machine operators 28,200 Processing returned products 20,700 Scrap processing (disposal) 24,200 Rework 8,900 Preventative maintenance 29,300 Product design 43,300 Warranty work 10,000 Finished goods inspection 22,800 From the above schedule of activity costs, determine the value-added Oa. $235,700 Ob. $171,900 Oc. $149,100 Od. $181,900 Activity Cost
Ferdon inc. company started job #4 with 32 units. 7 units were rejected upon inspection. normal spoilage is 5 units. costs prior to inspection amount to $1,450 per unit and the spoiled units have a salvage value of $520 per unit. what is the cost per unit of the good units in job #4
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Questions 5-10. Classify the mentioned costs using the following letters: to. Preventionb. Evaluationc. Internal failured. External failure 5. Inspect the purchased raw material when it arrives at the factory. 6. Honor a customer's warranty for a defective product 7. Repair defective products before selling them (rework) 8. Cost of damaged units (spoilage) 9. Training of manufacturing employees 10. Maintenance of the manufacturing equipment every three months
Cost of Normal Spoilage Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area at the customer's home, cuts the granite to that shape, and installs it. The Tramel job calls for direct materials of $2,100 and direct labor of $1,100. Overhead is applied at the rate of 110 percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly complete the job. The additional rework required direct materials costing $600 and direct labor costing $300. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage. Required: 1. Calculate the cost of the Tramel job. $ 2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank. 3. What if the additional rework required $600 of…
Illustrative Problem: SPOILED GOODS The GRAND CABINET COMPANY manufactures custom cabinets for homebuilders. During the current period, an order for 3,500 was begun as Job No. 2-54. Unit cost is as follows: Direct materials Direct labor Factory overhead (includes P1.00 allowance for spoiled units) Total P 19.60 17.20 2) If loss is special (specific order). 14.80 P 51.60 When the job was completed, 200 units were rejected and sold for P15.60 each. A separate work in process account is used for each cost element. Required: Journal entries under each of the following: T 1) If loss is due to internal failure (total production).