90.2K

Verified Solution

Link Copied!

Sunny Day Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Culin, the plant manager of Sunny Day, obtains the following information for Job #10 in August 2017. A total of 25 units were started, and 5 spoiled unts were detected and rejected at final inspection, yielding 20 good units. The spoiled unts were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,150 per unit. Assume that the 5 spoiled units of Sunny Day Machine Shop's Job #10 can be reworked for a total cost $2,100. A total cost of $5,750 associated with these units has already been assigned to Job #10 before the rework. Read the requirements Sunny Day Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin the plant manager of Sunny Day, obtains the following information for Job #10 in August 2017. A total of 25 units were started, and 5 spoiled units were detected and rejected at final inspection yielding 20 good units. The spoiled units were considered to be normal spoilage, Costs assigned prior to the inspection point are $1,150 per unit. Assume that the 5 spoiled units of Sunny Day Machine Shop's Job #10 can be reworked for a total cost $2,100. A total cost of $5,750 associated with these units has already been assigned to Job #10 before the rework Read the requirements Prepare the journal entries for the rework, assuming the following: (Record debits first, then credits. Exclude explanations a. The rework is related to a specific job. Journal Entry a Requirements Accounts Debit Credit Prepare the journal entries for the rework, assuming the following: a. The rework is related to a specific job b. The rework is common to all jobs c. The rework is considered to be abnormal Print Done Loss from Abnormal Rework Manufacturing Overhead Control Materials Control, Wages Pay. Control, Mfg. Overhead Allocated Work-in-Process Control (Job #10) Ete Clear all Check

Answer & Explanation Solved by verified expert

See Answer