Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for cases of mixed vegetables costs $ per case: direct materials, $; direct manufacturing labor, $; and manufacturing overhead allocated, $ The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently.
Read the requirements.
Requirement Assume that a laborer dropped cases. Suppose part of the cases could be sold to a nearby prison for $ cash. Prepare a journal entry to record this event. Calculate and explain briefly the unit cost of the remaining cases.
Prepare a journal entry to record this event. Abbreviations used: Mfg Manufacturing, Pay. Payable. Record debits first, then credits. Exclude explanations from any journal entries.
Journal Entry
tableJournal EntryAccountsDebit,CreditCashLoss from Abnormal Spoilage,,WorkinProcess Control,,
