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Sunny Day Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Sunny Day, obtains the following information
Sunny Day Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Sunny Day, obtains the following information for Job #10 in August 2017. A total of 40 units were started, and 8 spoiled units were detected and rejected at final inspection, yielding 32 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,200 per unit. Assume that the 8 spoiled units of Sunny Day Machine Shop's Job #10 can be reworked for a total cost $2,000. A total cost of $9,600 associated with these units has already been assigned to Job #10 before the rework. Read the requirements .. 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 Requirements Accounts Debit Credit 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 Help me solve this Etext pages Get more help Clear all Check
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