Question
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
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 $2,400 and direct labor of $600. Overhead is applied at the rate of 120 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 $900 and direct labor costing $600. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage.
Required:
1. Calculate the cost of the Tramel job.
$fill in the blank 45de990c5057059_1
2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank.
fill in the blank 635135017fdd021_2 | fill in the blank 635135017fdd021_3 | ||
fill in the blank 635135017fdd021_5 | fill in the blank 635135017fdd021_6 | ||
fill in the blank 635135017fdd021_8 | fill in the blank 635135017fdd021_9 |
3. What if the additional rework required $1,200 of direct labor? What would be the effect on the cost of the Tramel job?
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 $2,400 and direct labor of $600. Overhead is applied at the rate of 120 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 $900 and direct labor costing $600. Assume that the spoilage was due to carelessness by a Frieling worker and it is considered to be normal spoilage. Required: 1. Calculate the cost of the Tramel job. 2. Make any needed journal entry to the overhead control account. If an amount box does not require an entry, leave it blank. 3. What if the additional rework required $1,200 of direct labor? What would be the effect on the cost of the Tramel job
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