Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Job order costing; rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with
Job order costing; rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of $852,600 and 87,000, respectively, were used in developing the predetermined rate for the year. During the year, the company worked on Job #876 and incurred the following costs and machine hours: Direct material $28.500) Direct labor Machine hours a $13,080 105 1. What is the total cost of job #87675 2. What is the cost per unit if 900 were made? Note: Round your answer to two decimal places. b. in completing job #876, 18 units were defective and had to be reworked at a cost of $25 each. Assume that spoilage and rework costs were included in the original estimated overhead costs Where does the $450 rework cost appear in the accounts of Canyon City Co. c Disregard the facts in (b). Upon completing Job #876, the quality control inspector determined that 18 units were spoiled and would be unacceptable to the customer. Eighteen additional good units were made at a total cost of 1834. The spoiled units were sold for $144 as "seconds" to an outlet store. What is the total cost of job #876 Job order costing rework Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of $852,600 and 87,000, respectively, were used in developing the predetermined rate for the year. During the year, the company worked on job #876 and incurred the following costs and machine hours: Direct material $28,500 Direct labor Machine hours $13.080 195 1. What is the total cost of job #87675 0 2. What is the cost per unit if 900 were made? Note: Round your answer to two decimal places 50 b. In completing job #876, 18 units were defective and had to be reworked at a cost of $25 each. Assume that spoilage and rework costs were included in the original estimated overhead costs Where does the $450 rework cost appear in the accounts of Canyon City Co? Disregard the facts in (b). Upon completing Job #876, the quality control inspector determined that 18 units were spoiled and would be unacceptable to the customer. Eighteen additional good units were made at a total cost of $834. The spoiled units were sold for $144 as "seconds" to an outlet store. What is the total cost of job #5767 $0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started