question 30

What alternative approaches are there to account for the materials cost of reworked units? Should Heyer Appliances use the $110 circulation motor or the $125 motor to calculate the cost of materials reworked? Explain. What other costs might Heyer Appliances include in its analysis of the total costs of rework due to the circulation motors purchased from the (now) bankrupt supplier? The Russell Company has an extensive job costing facility that uses a variety of metals. Consider each requirement independently. Job 372 uses a particular metal alloy that is not used for any other job. Assume that scrap is material in amount and sold for $480 quickly after it is produced. Prepare the journal entry. The scrap from Job 372 consists of a metal used by many other jobs. No record is maintained of the scrap generated by individual jobs. Assume that scrap is accounted for at the time of its sale. Scrap totaling $4, 500 is sold. Prepare two alternative journal entries that could be used to account for the sale of scrap. Suppose the scrap generated in requirement 2 is returned to the storeroom for future use, and a journal entry is made to record the scrap. A month later, the scrap is reused as direct material on a subsequent job. Prepare the journal entries to record these transactions. The Seafood Company is a food-processing firm based in Maine. It operates under the weighted-average method of process costing and has two departments: cleaning and packaging. For the cleaning department, conversion costs are added evenly during the process, and direct materials are added at the beginning of the process. Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal value. All completed work is transferred to the packaging department. Summary data for May follow