Journal Entries to Correct Defective Work. The Spurrier Products Company manufactures, among other items, a unique...

  

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Journal Entries to Correct Defective Work. The Spurrier Products Company manufactures, among other items, a unique nutcracker. One order from the San Diego Specialty Company for 1,000 nutcrackers showed the following costs per unit: Materials.. Labor...... 2.00 Factory overhead applied at rate of 12 5% of labor cost. $3.00 Final inspection revealed that 120 units were improperly machined. These units were broken down, properly machined, and reassembled. Cost of correct- ing the defective nutcrackers consists of $1.20 per unit labor plus overhead at the normal rate, which includes an allowance for defective work. Required: Entries to record all costs related to the completion of the order when the: (a) Job is charged with the cost of defective work. (b) Cost of correcting defective work is not charged to a specific order. Journal Entries to Correct Defective Work. The Spurrier Products Company manufactures, among other items, a unique nutcracker. One order from the San Diego Specialty Company for 1,000 nutcrackers showed the following costs per unit: Materials.. Labor...... 2.00 Factory overhead applied at rate of 12 5% of labor cost. $3.00 Final inspection revealed that 120 units were improperly machined. These units were broken down, properly machined, and reassembled. Cost of correct- ing the defective nutcrackers consists of $1.20 per unit labor plus overhead at the normal rate, which includes an allowance for defective work. Required: Entries to record all costs related to the completion of the order when the: (a) Job is charged with the cost of defective work. (b) Cost of correcting defective work is not charged to a specific order.

Answer rating: 100% (QA)

a Cost of correcting defective work is charged to whole production In this case the additional cost ... View the full answer