1
answer
0
watching
117
views
28 Sep 2019
18-36 Spoilage injob costing. Jellyfish Machine Shop is a manufacturer of motorizedcarts for vacation resorts. Patrick Cullin, the plantmanager of Jellyfish, obtains the following information for Job #10in August 2014. A total of 46 units werestarted, and 6 spoiled units were detected and rejected at finalinspection, yielding 40 good units. Thespoiled units were considered to be normal spoilage. Costs assignedprior to the inspection point are $1,100per unit. The current disposal price of the spoiled units is $235per unit. When the spoilage is detected, thespoiled goods are inventoried at $235 per unit. 1. What is the normal spoilagerate? 2. Prepare the journal entriesto record the normal spoilage, assuming the following: a. The spoilage is related toa specific job. b. The spoilage is common toall jobs. c. The spoilage isconsidered abnormal.
| 18-36 Spoilage injob costing. Jellyfish Machine Shop is a manufacturer of motorizedcarts for vacation | ||||||||
| resorts. | ||||||||
| Patrick Cullin, the plantmanager of Jellyfish, obtains the following information for Job #10in August | ||||||||
| 2014. A total of 46 units werestarted, and 6 spoiled units were detected and rejected at finalinspection, | ||||||||
| yielding 40 good units. Thespoiled units were considered to be normal spoilage. Costs assignedprior to the | ||||||||
| inspection point are $1,100per unit. The current disposal price of the spoiled units is $235per unit. When | ||||||||
| the spoilage is detected, thespoiled goods are inventoried at $235 per unit. | ||||||||
| 1. What is the normal spoilagerate? | ||||||||
| 2. Prepare the journal entriesto record the normal spoilage, assuming the following: | ||||||||
| a. The spoilage is related toa specific job. | ||||||||
| b. The spoilage is common toall jobs. | ||||||||
| c. The spoilage isconsidered abnormal. | ||||||||
Nelly StrackeLv2
28 Sep 2019
Related questions
| 18-36 Spoilage injob costing. Jellyfish Machine Shop is a manufacturer of motorizedcarts for vacation | ||||||||
| resorts. | ||||||||
| Patrick Cullin, the plantmanager of Jellyfish, obtains the following information for Job #10in August | ||||||||
| 2014. A total of 46 units werestarted, and 6 spoiled units were detected and rejected at finalinspection, | ||||||||
| yielding 40 good units. Thespoiled units were considered to be normal spoilage. Costs assignedprior to the | ||||||||
| inspection point are $1,100per unit. The current disposal price of the spoiled units is $235per unit. When | ||||||||
| the spoilage is detected, thespoiled goods are inventoried at $235 per unit. | ||||||||
| 1. What is the normal spoilagerate? | ||||||||
| 2. Prepare the journal entriesto record the normal spoilage, assuming the following: | ||||||||
| a. The spoilage is related toa specific job. | ||||||||
| b. The spoilage is common toall jobs. | ||||||||
| c. The spoilage isconsidered abnormal. | ||||||||
| 18-37 Rework injob costing, journal entry (continuation of 18-36). Assume that the6 spoiled units of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jellyfish Machine Shopâs Job#10 can be reworked for a total cost of $1,800. A total cost of$6,600 associated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| with these units has alreadybeen assigned to Job #10 before the rework. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare the journal entriesfor the rework, assuming the following: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| a. The rework is related to aspecific job. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| b. The rework is common to alljobs. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| c. The rework is considered to be abnormal.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
