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Dragon Corporation manufactures a sophisticated controller that is compatible with a variety of gaming consoles. (Click the icon to view manufacturing and rework information.) In
Dragon Corporation manufactures a sophisticated controller that is compatible with a variety of gaming consoles. (Click the icon to view manufacturing and rework information.) In August 2020, Dragon manufactured 1,400 controllers, 76 of which required rework. Of these 76 controllers, 64 were considered normal rework common to all jobs and the other 12 were considered abnormal rework. Read the requirements. More info - Requirements Excluding rework costs, the cost of manufacturing one controller is $310. This consists of $207 in direct materials, $21 in direct manufacturing labor, and $82 in manufacturing overhead. Maintaining a reputation for quality is critical to Dragon. Any defective units identified at the inspection point are sent back for rework. It costs Dragon $83 to rework each defective controller, including $29 in direct materials, $24 in direct manufacturing labor, and $30 in manufacturing overhead. a. Prepare journal entries to record the accounting for both the normal and abnormal rework. b. What were the total rework costs of controllers in August 2020? c. Suppose instead that the normal rework is attributable entirely to Job #9, for 200 controllers intended for Australia. In this case, what are the total and unit costs of the good units produced for that job in August 2020? Prepare journal entries for the manufacture of the 200 controllers, as well as the normal rework costs. Print Done Print Done Requirement a. Prepare journal entries to record the accounting for both the normal and abnormal rework. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the journal entry for the normal reworked units. Journal Entry Accounts Debit Credit
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