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Lieu Company is a specialty print shop. Usually, printing jobs are priced at standard cost plus 5 0 percent. Job 6 3 1 involved printing
Lieu Company is a specialty print shop. Usually, printing jobs are priced at standard cost plus percent. Job involved printing wedding invitations with the following standard costs:
Direct materials $
Direct labor
Overhead
Total $
Normally, the invitations would be taken from the machine, the top one inspected for correct wording, spelling, and quality of print, and all of the invitations wrapped in plastic and stored on shelves designated for completed jobs. In this case, however, the technician decided to go to lunch before inspecting and wrapping the job. He stacked the unwrapped invitations beside the printing press and left. One hour later, he returned and found the invitations had fallen on the floor and been stepped on It turned out that about invitations were ruined and had to be discarded. An additional invitations were then printed to complete the job.
Required:
Calculate the cost of the spoiled invitations. If required, round your answer to the nearest cent.
$fill in the blank
What is the price of Job
$fill in the blank
Suppose that another job, also required wedding invitations. The standard costs are identical to those of Job However, Job required an unusual color of ink that could only be obtained in a formula that was difficult to use. Lieu printers know from experience that getting this ink color to print correctly requires trial and error. In the case of Job the first invitations had to be discarded due to inconsistencies in the color of ink. What is the cost of the spoilage? If required, round your answer to the nearest cent.
$fill in the blank
What is the price of Job
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