Caramel Industries uses job order costing.

Total costs in Job 211 500,000.00

Total units produced in Job 211 25,000.00

1,000 of the 25,000 units didn't pass inspection.

500 could be reworked. The cost to rework was: 2,400

500 couldn't be reworked.

There was also some scrap resulting from the job. The scrap had a resale value of 3,675.

Part A: Determine the final cost per unit in Job 211 IF:

Rework was not caused by the job.

The spoiled units were all considered normal and the spoilage was not specific to the job. They could be sold for a discounted prioce of $15 per unit.

The scrap was recognized at the time of production. The scrap was specific to the job and was considered significant.

Part B: Determine the final cost per unit in Job 211 IF

Rework was caused by the job.

The spoiled units were all considered normal but the spoilage was specific to the job. They could be sold for a discounted prioce of $15 per unit.

The scrap was recognized at the time of sale. The scrap was considered significant but was not specific to the job.