Question

Franklin Fabrication produces custom-made security doors and gates. Currently two jobs are in process, 359 and 360. During production of Job 359, the supervisor was on vacation and the employees made several errors in cutting the metal pieces for the two doors in the order. The spoiled metal pieces cost $20 each and had zero scrap value. In addition, an order of five gates that had been manufactured for Job 360 required a fine wire mesh that sometimes tore as it was being mounted. Because a similar wire could be used that was much easier to install, the customer had been warned that costs could run over the bid if any difficulty was encountered in installing the wire. One of the gates was spoiled during the process of installing the wire. The cost of the materials and direct labor for the gate was $150. The gate and metal were hauled to the dump and discarded.

REQUIRED
A. Should the spoilage for Job 359 be categorized as normal or abnormal spoilage? Explain.
B. Should the spoilage for Job 360 be categorized as normal or abnormal spoilage? Explain.



$1.99
Sales0
Views49
Comments0
  • CreatedJanuary 26, 2015
  • Files Included
Post your question
5000