Question
Sandy Cart Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Sandy, obtains the following information for Job
Sandy Cart Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Sandy, obtains the following information for Job #10 in August 2017. A total of 46 units were started, and 6 spoiled units were detected and rejected at final inspection, yielding 40 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1450 per unit. Assume that the 6 spoiled units of Sandy Cart Shop's Job #10 can be reworked for a total cost $1900. A total cost of $8700 associated with these units has already been assigned to Job #10 before the rework.
Requirements Prepare the journal entries for the rework, assuming the following: a. The rework is related to a specific job. b. The rework is common to all jobs. c. The rework is considered to be abnormal. Print Done Prepare the journal entries for the rework, assuming the following: (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: "Pay." = Payable, "Mfg." = Manufacturing.) a. The rework is related to a specific job. Journal Entry Accounts Debit Credit Loss from Abnormal Rework Manufacturing Overhead Control Materials Control, Wages Pay. Control, Mfg. Overhead Allocated Work-in-Process Control (Job #10)Step by Step Solution
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