Herbert Electronics manufactures an integrated transistor circuit board for repeat customers but also accepts special orders for
Question:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6.00
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00
Total cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.00
When the completed products were tested, 50 circuit boards were found to be defective. The costs per unit of correcting the defects follow:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.00
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00
Record the journal entry for the costs to correct the defective work:
a. If the cost of the defective work is charged to factory overhead.
b. If the cost of the defective work is charged to the specific job.
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Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
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