Kali Company manufactured coil over springs for cars. During this year, Kali manufactured 200 units coil over
Question:
Kali Company manufactured coil over springs for cars. During this year, Kali manufactured 200 units coil over springs. After final inspection, it was determined that 15 units were defective. The cost per unit to rework the defective units were the following: $100 for direct materials, $160 for direct labor and the appropriate factory overhead rate. The following were the unit cost for the 200 coil over springs: Direct materials $800, Direct labor $350, Applied overhead 160% of direct labor cost (150% in case defective units were charged to specific order) If the defective goods were charged to all jobs, how much is the cost transferred to finish goods at the end of the year?
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker