Aty Corporation manufactured 2,000 motors to fill an order by incurring the lewing costs Direct materials Direct labor Factory overhead (60% of direct labor
Aty Corporation manufactured 2,000 motors to fill an order by incurring the lewing costs Direct materials Direct labor Factory overhead (60% of direct labor cost) Total production costs 600,000 400,000 240,000 1,240,000 The company found out that 200 of the motors were defective. The company anred the following costs to rework the defective motora. Direct materials Direct labor Factory overhead (60% of direct labor cost) 40,000 120,000 72,000 Required: Prepare journal entries to record the cost incurred and the reworking st Assuming the loss is normal and the rework costs are specific to the jobs. Assuming the loss is normal and the rework costs are charged to all production. & Assuming the loss is abnormal.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Assuming the loss is normal and the rework costs are specific to the jobs Cost incurred for the defective motors Direct materials 40000 Direct labor 1...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started