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The Zaria Company produces many varieties of Screws. One order of which was for Arslan Manufacturing Company for 1000 Screws. The costs upon completion of
The Zaria Company produces many varieties of Screws. One order of which was for Arslan Manufacturing Company for 1000 Screws. The costs upon completion of this order were: Direct material cost Rs.10 per screw Direct Labour cost Rs. 7 per screw Manufacturing cost Rs. 3 per screw Inspection, however, reveals that a certain part of work is defective. The defectiveness was reworked at the following cost: Direct material cost Rs. 400 Direct Labour cost Rs. 200 Manufacturing cost Rs. 100 Required: Prepare Journal entries to record completion of the special order when: - 1. Job is charged with the cost of defective work 2. Job is not charged directly for the defective work
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