Question
Assume that the defective goods were charged to alljobs, whatis the cost transferred to finish goods at the end of the year? KW Inc. manufactured
Assume that the defective goods were charged to alljobs, whatis the cost transferred to finish goods at the end of the year? KW Inc. manufactured coil over springs for cars. During this year, KW Inc. manufactured 200 units coil over springs: After final inspection, it was determined that 15 units were defective: The cost per unit t0 rework the defective units were the following: PIOO for direct materials, P16O for direct labor and the appropriate factory overhead rate. The following were the unit cost for the 200 coil over springs: Direct materials PSOO Direct labor P3SO Applied overhead 160% of direct labor cost (150% in case defective units were charged to specific order) 342,000 335,000 349,740 342,500'
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