Question
Sheba, Inc. produces custom-made winter coats for pets. During December, management determined the following facts all relating to Job 22: Total production 300 jackets Abnormal
Sheba, Inc. produces custom-made winter coats for pets. During December, management determined the following facts all relating to Job 22:
Total production 300 jackets
Abnormal spoilage 16 jackets
Abnormal defective units 4 jackets
Normal spoilage 10 jackets
Normal defective units 2 jackets
Salvage value for spoiled units P 5 per jacket
Cost to rework defective units:
Materials P 18
Direct labor 25
Applied factory overhead 5
Scrap materials were sold for a total of P35. It costs P20 to dispose of waste materials. Total production costs were calculated to be P7,500.
Required:
Prepare entries to record the above information under job order costing. Assume the factory overhead application rate ignores normal spoilage, rework costs, and resale value of scrap.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To record the above information under job order costing we need to make the follow...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
Document Format ( 2 attachments)
6641e5234eac5_987646.pdf
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6641e5234eac5_987646.docx
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