Ram furnitures produces chairs and tables in accordance with job orders from customers. Given below are the details of a recent order. Number of chairs in the job order Unit cost per chair (Breakup given below) 70 $95.00 DM cost $40.00 DL cost $35.00 Manufacturing overhead cost $20.00 The manufacturing overhead cost per chair (given above) includes a provision for normal spoilage. chairs were found to be below acceptable quality and sold to a scrap dealer for 6 $12 per chair Prepare the appropriate journal entries for spoilage for the three independent cases given below. Also calculate the average cost of one good unit of chair in the job order for each of the three cases. a) The rejection due to unacceptable quality is considered as abnormal spoilage b) The rejection is considered normal and the rejection is attributable to the exacting specifications of this job c) The rejection is considered normal and the rejection is not attributable to this job and is a characteristic of the

Ram furnitures produces chairs and tables in accordance with job orders from customers. Given below are the details of a recent order. Number of chairs in the job order Unit cost per chair (Breakup given below) 70 $95.00 DM cost $40.00 DL cost $35.00 Manufacturing overhead cost $20.00 The manufacturing overhead cost per chair (given above) includes a provision for normal spoilage. chairs were found to be below acceptable quality and sold to a scrap dealer for 6 $12 per chair Prepare the appropriate journal entries for spoilage for the three independent cases given below. Also calculate the average cost of one good unit of chair in the job order for each of the three cases. a) The rejection due to unacceptable quality is considered as abnormal spoilage b) The rejection is considered normal and the rejection is attributable to the exacting specifications of this job c) The rejection is considered normal and the rejection is not attributable to this job and is a characteristic of the

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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Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below: Motor tune-up Standard Hours 2.50 Standard Rate Standard Cost $ 29.00 $ 72.50 The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 54 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups: Labor rate variance $ 120 F Labor spending variance $ 170 U Required: 1. Determine the number of actual labor-hours spent on tune-ups during the week. 2. Determine the actual hourly pay rate for tune-ups last week. Note: Round your answer to 2 decimal places. 1. Actual labor hours 2. Actual hourly rate hours per hour
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
Martin Company received an order for 25 automatic mixing machines. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P80; labor cost, P194; and manufacturing overhead for this order is to be applied at 100% of the labor cost. During production, 5 units were found to be defective and required the following total additional costs: materials, P97, labor, P125, and manufacturing overhead at the 100% rate. On final inspection, 2 units were classified as seconds and sold for P400 each, the proceeds being credited to the order. The purchaser has agreed to accept the 23 machines, although the acceptable units are fewer than the number ordered. What is the unit cost of the completed units? (Round-off to the nearest peso) IN A GOOD ACCOUNTING FORM WILL BE GREAT ALSO!
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
(Defective units and rework) Plastico produces plastic pipe to customer specifications. Losses of less than 5 per cent are considered normal because they are inherent in the production process. The company applies overhead to products using machine hours. PlastiCo used the following information in setting its predetermined OH rate for 2010: Expected overhead other than rework $850,000 Expected rework costs 75,000 Total expected overhead $925,000 Expected machine hours for 2010 100,000 During 2010, the following production and cost data were accumulated: 2,000,000 feet of pipe 40,000 feet of pipe Total good production completed Total defects Ending inventory 75,000 feet of pipe Total cost of direct material for Job #B316 $687,100 Total cost of direct labor for Job #B316 $157,750 Total machine hours for Job #B316 3,080 Cost of reworking defects during 2010 $75,500 Total actual overhead cost for 2010 $862,000 a. Determine the overhead application rate for 2010. b. Determine the cost for…
Martin Company received an order for 25 automatic mixing machines. Because ofthe order's exacting specifications, it is anticipated that defective and spoiled work willexceed the normal rate. The materials cost per unit is P80; labor cost, P194; andmanufacturing overhead for this order is to be applied at 100% of the labor cost.During production, 5 units were found to be defective and required the following totaladditional costs: materials, P97, labor, P125, and manufacturing overhead at the 100%rate. On final inspection, 2 units were classified as seconds and sold for P400 each,the proceeds being credited to the order. The purchaser has agreed to accept the 23machines, although the acceptable units are fewer than the number ordered. What isthe unit cost of the completed units?
Kindly answer and explain the 2 questions.
Pharoah Corp. received an order for 25 automatic mixing machines. Because of the order's exacting specifications, it is anticipated that defective and spoiled work will exceed the normal rate. The materials cost per unit is P80; labor cost, P194; and manufacturing overhead for this order is to be applied at 100% of the labor cost. During production, 5 units were found to be defective and required the following total additional costs: materials, P97, labor, P125, and manufacturing overhead at the 100% rate. On final inspection, 2 units were classified as seconds and sold for P400 each, the proceeds being credited to the order. The purchaser has agreed to accept the 23 machines, although the acceptable units are fewer than the number ordered. What is the unit cost of the completed units?
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Sokolov Office Decor produces commercial office furnishing for educational institutions, hospitals, and offices. The company uses a job costing system to record its costs. A recent order for 2,500 sections of wall units had the following costs per unit: Direct materials $300 Direct labour $200 Manufacturing overhead allocated $100 $600 Refer to the original data. Inspectors at the company rejected 200 of the 2,500 wall units due to dents and scratches. The wall units were sold to a local contractor at a discount for $40,000. The contractor used the units to furnish a building. Assume this rejection rate is considered normal. Prepare the journal entry and calculate the unit cost if the rejection is attributable to this particular job. Cost per unit - $634.78Prepare the journal entry and calculate the unit cost if the rejection is…