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dxpayne dxpayne
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6 years ago
Robotoys Incorporated manufactures and distributes small robotic toys. Reworked units are common. The average cost of the reworked orders is $11.30: $4.15 for labour, $5.00 for more materials, and $2.15 for overhead. This ratio of costs holds for the average original order. On a recent day, the shop reworked 83 orders out of 700. The original cost of the 83 orders totaled $1,909. The average cost of all orders is $24.34, including rework, with an average selling price of $34.50.

Required:
Prepare the necessary journal entry to record the rework for the day if the shop charges such activities to Robo Department Overhead Control. Prepare journal entries to record all relevant rework charges as well as to transfer the reworked items finished goods to Finished Goods Inventory.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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wrote...
6 years ago
Robo Department Overhead Control      937.90
   Materials Control (83 × $5.00)   415.00
   Wages Payable Control (83 × $4.15)   344.45
   Shop Overhead Control (83 × $2.15)   178.45

Finished Goods      1,909
   Work-in-Process Control   1,909
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