Do Homework - Assignment 1 - Google Chrome mylab.pearson.com/Student/PlayerHomework.aspx?homeworkld=597303308&questionld=4&flushed=false&cld=6507661¢erwin=yes ACCT 355v12: Cost Analysis 2021-2022 basil saju 03/25/22 1:55 PM Homework: Assignment 1 Question 5, Problem 18-43 (similar to) HW Score: 44.4%, 3.55 of 8 points Save Part 1 of 5 Points: 0.03 of 1 Industrial Fire (IF) Corporation is a manufacturer of computer chips based in Richmond It manufactures two types of computer chips, CS1 and CS2 The costs of manufacturing each CS1 chip, excluding rework costs, are direct materials, $66, direct manufacturing labour, $13, and manufacturing overhead, $40, Defective units are sent to a separate rework area. Rework costs per CS1 chip are direct materials, $15, direct manufacturing labour, $13, and manufacturing overhead, $18. i (Click the icon to view additional Information ) Required 1. Prepare journal entries to record the accounting for the cost of the spoiled chips and for rework 2. What were the total rework costs of CS1 chips in August 2018? X More info In August 2018, IF manufactured 1,600 CS1 chips and 1,000 CS2 chips, 96 of the CS1 chips and none of the CS2 chips required rework IF classifies 66 of the CS1 Requirement 1. Prepare journal entries to record the accounting for the cost of the spoiled chips and for rev chips reworked as normal rework caused by inherent problems in its production Begin by journalizing the costs assigned to the spoiled units before considering the rework costs (Record d process that coincidentally occurred only during the production of CS1. Hence, the rework costs for these 66 CS1 chips are normal rework costs not specifically Journal Entry attributable to the CS1 product. IF classifies the remaining 30 units of CS1 chips reworked as abnormal rework IF allocates manufacturing overhead on the basis of Accounts Debit Credit machine-hours required to manufacture CS1 and CS2 Each CS1 and CS2 chip Work-in-Process Control (CS1 chips) 11424 requires the same number of machine-hours. Materials Control 6636 Wages Payable 1248 Manufacturing Overhead Allocated 3840 Print Done