Question
E18-33 (book/static) Heyer Appliances assembles dishwashers at its plant in Tuscaloosa, Alabama. In February 2017, 60 circulation motors that cost $110 each (from a new
E18-33 (book/static) Heyer Appliances assembles dishwashers at its plant in Tuscaloosa, Alabama. In February 2017, 60 circulation motors that cost $110 each (from a new supplier who subsequently went bankrupt) were defective and had to be disposed of at zero net disposal value. Heyer Appliances was able to rework all 60 dishwashers by substituting new circulation motors purchased from one of its existing suppliers. Each replacement motor cost $125. Read the requirements
Requirement 1. What alternative approaches are there to account for the materials cost of reworked units? (Select all that apply.)
A. To charge the costs of rework to the current period as a separate expense item as abnormal rework.
B. To charge the costs of rework to the Wages Payable Control account as normal rework.
C. To charge the costs of rework to the Materials Control account as abnormal rework.
D. To charge the costs of rework to manufacturing overhead as normal rework
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