Answered step by step
Verified Expert Solution
Link Copied!

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 a

image text in transcribed

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 $13,080 Machine hours 195 a. 1. What is the total cost of Job #8767 $ 2. What is the cost per unit i 900 were made? Note: Round your answer to two decimal places, $ 0 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.? Manufacturing Overhead Control 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 $834. The spoiled units were sold for $144 as "seconds" to an outlet store. What is the total cost of Job #876? $ 0 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance A Practical Perspective

Authors: Adrian Buckley

1st Edition

0273731866, 9780273731863

More Books

Students also viewed these Accounting questions

Question

Differentiate between classical and operant conditioning.

Answered: 1 week ago

Question

What are employee assistance programs and wellness programs?

Answered: 1 week ago