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Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job
Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job #10 in August 2017. A total of 54 units were started, and 9 spoiled units were detected and rejected at final inspection, yielding 45 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,150 per unit. Assume that the 9 spoiled units of Jellyfish Machine Shop's Job #10 can be reworked for a total cost $2,000. A total cost of $10,350 associated with these units has already been assigned to Job #10 before the rework. Read the requirements. Prepare the journal entries for the rework, assuming the following: (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: "Pay." = Payable, "Mfg." = Manufacturing.) = a. The rework is related to a specific job. Journal Entry - Accounts Debit Credit Requirements Prepare the journal entries for the rework, assuming the following: a. The rework is related to a specific job. b. The rework is common to all jobs. c. The rework is considered to be abnormal. Print Done
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