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no more need Heyer Applanoes assenbles dishwashers at its plant in Tuscaloosa, Alatuma. In February 2020 , 60 ciroulason motors that cost $110 each (trom
no more need
Heyer Applanoes assenbles dishwashers at its plant in Tuscaloosa, Alatuma. In February 2020 , 60 ciroulason motors that cost $110 each (trom a new wupplier who siosequenty went bankrupt were telective and had to be disposed of at zero net dieposal value. Heyer Appliances was able to revolk all 60 dishwashers by sibstituting new circulation metors purchased from one of its exithg suppliert. Each repiacelnent mosor cost $125 Read the recuitements. Requirement 1. What attemasve approsches are there to account for the material cost of rewoned units? (Select ai that appty) A. To charge the costs of rewonk to the Wages Payable Control acoount as noemal rework. B. To charge the coste of rework to manutacturng overhead as normal rework: C. To charge the costs of rework to the Materiats Control account as abnotinal tework. D. To charge the costs of rewonk to the current period as a seporate expense lien as abnormal rewock. Requirement 2. Should heyer Applianoes use the $110 circulation motor or the $125 motor to calculate the cost of materials reworked? Explain. Heyer Applanoes stiouid use the motor cost because it is Requirement 3. What otter costs might Heyer Appliances include in its analysis of the total costs of rework due to the circulation motors purchased trom the (now) baninupt suppler? Heyer Appliances assembles ditwashers at is plant in Tuscaloosa. Alabana. In February 2020 , 60 circilaticn motors that cost $110 each (from a rew suppler who subsequentsy went bankupt) were delective and had to be dieposed of at zero net disposal value. Heyer Applances was able to rework all 60 dishiwashers by substituting new creulabon motcrs purchased from tone of ts existing suppliers. Each teplacement motor cost $125. Read the ientirements Requirement 1. What altermative approaches are there to account for the matertals cost of reworked units? (Select ail giat apply) A. To chatge the costs of rework to the Wages Payable Control acoount as norrmal rewark B. To charge the sosss of rework to manufacturing overhend as normal rework. c. To charge the costs of rework to the Materials Control account as abnorrral rework. D. To charge the cosss of rework to the current period as a separate expense teem as abnormal rework. Requirement2. Should Heyer Appliances use the $110 circulation motor or the $125 motor to calculate ine cost of materials reworked? Explain. Heyer Applances should use the mosor cost because it is Requirement 3. What other costs might Heyer Appliances include in is at the (now) bankrupt supplier? one of lis exising suppliers. Each replacement motor cost $125 Step by Step Solution
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