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Spoilage, Scrap, Rework Crest Company produces baking goods. In November, the company received an order for 2.000 units of cakes for Angel's 20nd Birthday. Cost
Spoilage, Scrap, Rework Crest Company produces baking goods. In November, the company received an order for 2.000 units of cakes for Angel's 20nd Birthday. Cost for processing a cake is Rp80.000. Direct materials, Rp30.000/unit, Direct Labour, Rp.30.000/unit, and MOH, Rp20.000/unit. The Rp20.000/unit of MOH cost rate includes a provision for normal spoilage (if considered common to all job). Required: 1. There are 50 units of abnormal spoilage. The 50 units were sold to a food garage sale for Rp250.000 altogether. Prepare a journal entry to record this transaction. What is the unit cost for the remaining 1950 good units? (4%) 2. Prepare the journal entry to record as if the 50 units were normal spoilage. Calculate the unit cost if the 50 units spoilage is normal and specific to this specific job (4%) 3. Prepare the journal entry to record the normal spoilage. Calculate the unit cost if the spoilage is normal and not attributable to this specific job (4%) 4. Refer to the original information. Crest Company's Quality Control Team then rejected the 50 spoiled units with some discoloration. But then deciding to remodel the spoiled units and add a new food colouring. This operation, which is considered normal, will cost Rp5,000,000 altogether. Prepare a journal entry to record this and do the following: 1. Calculate the unit cost of all the cakes if this additional cost was incurred because of the exacting specifications of this particular job (1,5%) 2. Calculate the unit cost of all the cakes if this additional cost occurs regularly because of difficulty in colouring cakes (1,5%)
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