Aty Corporation manufactured 2,000 motors to fill an order by incurring the lewing costs Direct materials...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Aty Corporation manufactured 2,000 motors to fill an order by incurring the lewing costs Direct materials Direct labor Factory overhead (60% of direct labor cost) Total production costs 600,000 400,000 240,000 1,240,000 The company found out that 200 of the motors were defective. The company anred the following costs to rework the defective motora. Direct materials Direct labor Factory overhead (60% of direct labor cost) 40,000 120,000 72,000 Required: Prepare journal entries to record the cost incurred and the reworking st Assuming the loss is normal and the rework costs are specific to the jobs. Assuming the loss is normal and the rework costs are charged to all production. & Assuming the loss is abnormal. Aty Corporation manufactured 2,000 motors to fill an order by incurring the lewing costs Direct materials Direct labor Factory overhead (60% of direct labor cost) Total production costs 600,000 400,000 240,000 1,240,000 The company found out that 200 of the motors were defective. The company anred the following costs to rework the defective motora. Direct materials Direct labor Factory overhead (60% of direct labor cost) 40,000 120,000 72,000 Required: Prepare journal entries to record the cost incurred and the reworking st Assuming the loss is normal and the rework costs are specific to the jobs. Assuming the loss is normal and the rework costs are charged to all production. & Assuming the loss is abnormal.
Expert Answer:
Answer rating: 100% (QA)
Assuming the loss is normal and the rework costs are specific to the jobs Cost incurred for the defective motors Direct materials 40000 Direct labor 1... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
This lesson provides a decision-making guide to help you integrate what you've learned in previous lessons. The main benefit of this guide is that it will force you to think more clearly about the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following data were taken from the records of Cougar Enterprises, a Canadian manufacturer that uses a normal job-order costing system: During December, the company worked on jobs numbered 70...
-
Bloomberg Intelligence listed 50 companies to watch in 2018 (www .bloomberg.com/features/companies-to-watch-2018). Twelve of the companies are listed here with their total assets and 12-month sales....
-
1. If the estimated S(t) = 0.3 at t = 36 months, this means that the 3 year survival probability is 0.3. 2. If the 3 year survival probability is 0.3, this means that 70% of patients die ('fail')...
-
In Problems 516, evaluate each expression. 50 49
-
1.1 Global Financial Integrity. The field of international finance has always been one where the best and worst of economic behaviors may flourish. Explore the website of Global Financial Integrity,...
-
Preston Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Preston allocates overhead based on yards of direct materials. The company's performance...
-
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be depreciated straight-line to zero...
-
Other information: Intercompany sales: On January 1, Year 10: Salt had on hand $30,000 of inventory purchased from Pillar. Pillar had on hand $90,000 of inventory purchased from Salt. Both companies...
-
Determine the orbital velocity if you wanted to launch something to orbit the moon: Mass of moon = 7.36 x 10^22 kg Radius of Moon = 1.74 x 10^6 m Group of answer choices 4.23 m/s 21,000 m/s 1680 m/s...
-
Performing inquiry and analytical procedures is the primary basis for an accountant to issue a (an) a. Compilation report on financial statements for a nonpublic entity in its first year of...
-
On March 12, 19X5, Brown & Brown, CPAs, completed the audit of the financial statements of Modern Museum, Inc., for the year ended December 31, 19X4. Modern Museum presents comparative financial...
-
Walter Kunitake, CPA, has been asked by the management of Russell Company, a nonpublic real estate agency, to compile a set of financial statements as of the companys year end, November 30, 19X4. a....
-
At the beginning of the fiscal year, a tenant signs a three-year lease to rent office space at the rate of \(\$ 1,000\) per month. The first six months are free. How much rent expense should be...
-
Define the following terms, as used in lease accounting standards: - Bargain purchase option (BPO). - Lease term. - Minimum net lease payments. - Contingent lease payments. - Bargain renewal term. -...
-
Ursala, Incorporated, has a target debt - equity ratio of 1 . 3 5 . Its WACC is 8 . 6 percent, and the tax rate is 2 4 percent. If the company s cost of equity is 1 4 percent, what is its pretax cost...
-
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
-
What is the product unit cost for JOB 14, which consists of 300 units and has total manufacturing costs of direct materials, $4,500; direct labor, $7,500; and overhead, $3,600? What are the prime...
-
Wages are paid each Saturday for a six-day workweek. Wages are currently running $1,380 per week. Prepare the adjusting entry required on June 30, assuming July 1 falls on a Tuesday.
-
Six Stat Pizza manufactures frozen pizzas and calzones and sells them for $4 each. It is currently considering a proposal to manufacture and sell fully prepared products. The following relevant...
-
Consider the following network (in technical terms, a directed graph or "digraph"). Each circle, here marked with one of the letters A to P, represents a node of the network. Some of these nodes...
-
Consider the game Chomp from Exercise 1.5 of size \(2 \times 4\), in a game sum with a Nim heap of size 4. What are the winning moves of the starting player I, if any? 00
-
Consider the following variant of Nim called Split-Nim, which is played with heaps of tokens as in Nim. Like in Nim, a player can remove some tokens from one of the heaps, or else split a heap into...
Study smarter with the SolutionInn App