Cost of Normal Spoilage

Frieling Company installs granite countertops in customers' homes. First, the customer chooses the particular granite slab, and then Frieling measures the countertop area

at the customer's home, cuts the granite to that shape, and installs it$.$ The Tramel job calls for direct materials of $$2,900$ and direct labor of $$1,100.$ Overhead is applied

at the rate of $140$ percent of direct labor cost. Unfortunately, one small countertop breaks during installation and Frieling must cut another piece and install it to properly

complete the job. The additional rework required direct materials costing $$1,400$ and direct labor costing $$1,100.$ Assume that the spoilage was due to carelessness by a

Frieling worker and it is considered to be normal spoilage.

Required:

Calculate the cost of the Tramel job.

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$$ Check My Work

Normal spoilage is expected due to the nature of the typical production process and the cost is included in overhead that is then applied to all good units

produced.

Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.

Overhead Control $v$