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1. Gladfly Ltd, specializes in custom paint jobs for motorcycles. The majority of its work arises from walk-in customers who have a general idea of

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1. Gladfly Ltd, specializes in custom paint jobs for motorcycles. The majority of its work arises from walk-in customers who have a general idea of the artwork they want on their bikes, but rely on Gladfly's staff to create the actual design. These are one-of-a-kind jobs. On occasion, a motorcycle club or a dealership will request that a specific design be used on a group of motorcycles, and the specific design is normally provided by the customer for these jobs Painting is done using an air compressor and a variety sizes of paint sprayers. In spite of regular cleaning and maintenance, the paint sprayers can clog and then the paint can be emitted in a burst, which can result in the need to repaint the design. When it is necessary to repaint, it may be possible to simply paint over the area, resulting in extra time and paint being used. If a significant problem arises, it may be necessary to remove the paint and start over, adding additional time and the use of solvents and other cleaning products. Job 322 required an additional $45 in paint and $60 in labour to repaint part of a design due to a clogged paint sprayer Additionally, some designs are very detailed and intricate, requiring hand painting with fine brushes. These designs are particularly prone to problems, requiring touch-ups and the occasional repainting in order to meet the customer specifications. Job 410 required repainting with additional paint costs of $21 and additional labour of S75 due to the intricacy of the design Required: a) Assist the owner of Gladfly by explaining how to properly account for the additional costs of repainting motorcycles None of the repainting costs have yet been recorded. Prepare two separate journal entries for the repainting on each job identified above b) Explain why in the real world, companies do not always follow the recommendation made in part a) of this question mon Human Resources 3 1 1. Gladfly Ltd, specializes in custom paint jobs for motorcycles. The majority of its work arises from walk-in customers who have a general idea of the artwork they want on their bikes, but rely on Gladfly's staff to create the actual design. These are one-of-a-kind jobs. On occasion, a motorcycle club or a dealership will request that a specific design be used on a group of motorcycles, and the specific design is normally provided by the customer for these jobs Painting is done using an air compressor and a variety sizes of paint sprayers. In spite of regular cleaning and maintenance, the paint sprayers can clog and then the paint can be emitted in a burst, which can result in the need to repaint the design. When it is necessary to repaint, it may be possible to simply paint over the area, resulting in extra time and paint being used. If a significant problem arises, it may be necessary to remove the paint and start over, adding additional time and the use of solvents and other cleaning products. Job 322 required an additional $45 in paint and $60 in labour to repaint part of a design due to a clogged paint sprayer Additionally, some designs are very detailed and intricate, requiring hand painting with fine brushes. These designs are particularly prone to problems, requiring touch-ups and the occasional repainting in order to meet the customer specifications. Job 410 required repainting with additional paint costs of $21 and additional labour of S75 due to the intricacy of the design Required: a) Assist the owner of Gladfly by explaining how to properly account for the additional costs of repainting motorcycles None of the repainting costs have yet been recorded. Prepare two separate journal entries for the repainting on each job identified above b) Explain why in the real world, companies do not always follow the recommendation made in part a) of this question mon Human Resources 3 1

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