Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carriage Florists operate a flower shop. Because most of their orders are via telephone, numerous orders have to be reworked. The average cost of the

Carriage Florists operate a flower shop. Because most of their orders are via telephone, numerous orders have to be reworked. The average cost of the reworked orders is $4. Of this amount, $2.50 relates to labour costs, $1 for additional flowers, and $.50 for overhead. Yesterday, the shop reworked 32 orders out of 166. The original cost of the 32 orders totalled $480.

a) Prepare the necessary journal entry to record the rework for the day if the shop considers the rework costs to be normal and common to all customer orders.

b) Prepare a journal entry to transfer the 32 reworked units to Finished Goods Inventory when completed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics In Minutes 200 Key Concepts Explained In An Instant

Authors: Niall Kishtainy

1st Edition

1782066470, 9781782066477

More Books

Students also viewed these Accounting questions

Question

Where is the position?

Answered: 1 week ago

Question

2. What role should job descriptions play in training at Apex?

Answered: 1 week ago