Cost Accounting_ADM3346 CAPSTONE EXERCISES Chapter 19 Spoilage, Rework and Scrap Q1. Boutin Company uses a job costing system. During October, the following costs are incurred on Job 110 to manufacture 200 motors: Original costs: Direct materials $6,600 Direct manufacturing labour 8,000 Manufacturing overhead allocated (150% of direct manufacturing labour) Direct cost of reworking 10 motors: Direct materials $ 1,000 Direct manufacturing labour 1,600 Total $2,600 Required: 1. Prepare the journal entry to record the rework costs and compute the cost per finished motor for Job 110, assuming the rework is attributable specifically to Job 110. 2. Prepare the journal entry to record the rework costs and compute the cost per finished motor for Job 110, assuming the rework is common to all jobs. 3. As a small company, the method of recording rework costs is based on Boutins accountant Helen Perezs judgement. Helen believed that Job 110 was an unusual job so that the rework costs should be considered for Job 110. However, she did not know exactly why the rework occurred for Job 110. Please state two cons and pros of assigning rework costs to a job. What should the CEO Martha Perez do? Q2. Refer to the information in Problem 19-39 (page 795). Required For August, summarize total costs to account for, and assign these costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process for Finishing Department assuming the company uses the FIFO method of process costing.