Anderson Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,450 cases of mixed vegotables costs $6 per case: direct materials, \$3; direct manufacturing labor, \$2; and manufacturing overhead allocated, \$1. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. Read the requirements. Requirements Requirement 1. Assume that explain briefly the unit cost of t Prepare a journal entry to reco 1. Assume that a laborer dropped 490 cases. Suppose part of the 490 cases could be sold to a nearby prison for $490 cash. Prepare a journal entry to record this event. Calculate and explain briefly the unit cost of the remaining 1,960 cases. 2. Refer to the original data. Tasters at the company reject 490 of the 2,450 cases. The 490 cases are disposed of for $980. Assume that this rejection rate is considered normal. a. Prepare a journal entry to record this event, and calculate the unit cost if the rejection is attributable to exacting specifications of this particular job. b. Prepare a journal entry to record this event, and calculate the unit cost if the rejection is characteristic of the production process and is not attributable to this specific job. c. Are unit costs the same in requirements 2a and 2b ? Explain your reasoning briefly. 3. Refer to the original data. Tasters rejected 490 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $490. a. Prepare a joumal entry to record this event, and calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job. b. Prepare a journal entry to record this event, and calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning. c. Are unit costs the same in requirements 3a and 36 ? Explain your reasoning briefly. manufacturing labor, $2; and manufacturing overhead allocated, \$1. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. Read the requirements 1 . 1,960 cases. Prepare a journal entry to record this event. (Abbreviations used: Mig. = Manufacturing. Pay. = Payable. Record debits first, then credits. Exclude explanations from any journal entries.) Calculate and explain briefly the unit cost of the remaining 1,960 cases. The cost, per case, for the remaining cases is The cost of these cases is Requirement 2. Refer to the original data. Tasters at the company reject 490 of the 2.460 cases. The 490 cases are disposed of for $980. Assume that this rejection rate is considered normal. from any joumal entries.) Calculate the unit cost if the rejection is atributable to exacting specifications of this particular job. (Rourd the cost to two decimal places.) The unit cost is The unit cost is Paper szzo Exclude explanations from any journal entries.) Calculate the unit cost if the rejection is characteristic of the production process and is not attributable to this specific job. The unit cost is c. Are unit costs the same in requirements 2a and 2 b? Explain your reasoning briefly. The unit costs in 2a and 2b are (14) This is because the normal spoilage cost is (15) In 2b, these costs are charged as part of {16 per case, which includes a provision for normal spoilage. cost $490. explanations from any journak entries.) The unit cost is joumal entries.) Calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning. The unit cost is c. Are unit costs the same in requirements 3a and 3b ? Explain your reasoning briefly. The unit costs in 3a and 3b are (25). This is because the normal rework cost is (26) In 3b, these costs are charged as part of (27) per case, which includes a provision for normal rework
