The Leprechaun Company uses Normal Costing and Job Order Costing, Job 57 was charged $30,000 for Direct Materials, $20,000 for Direct Labor, and $25,000 for Overhead. Overhead is charged to jobs using Direct Labor Cost. The job consisted of 150 units. After the job was completed, but before it was sent to the Finished Goods Warehouse, 6 units were found to be spoiled.

For each of the following three situations, tell how many dollars would be transferred to Finished Goods Control after we take care of the spoilage.

The 6 bad units are thrown away. Treat the spoilage as abnormal.

The 6 bad units are thrown away. Treat the spoilage as normal specific.

The 6 bad units are sold for $50 each. Treat the spoilage as normal generic.

Answer rating: 100% (QA)

Production cost of Job 57 Direct material direct labour overhead 30000 20000 25000 75000 Units ... View the full answer