AC2720_Analysis 5.1_Template - Normal and abnormal spoilage...

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Unformatted text preview: Normal and abnormal spoilage in units Problem 1 Part 1: Total spoiled units Normal spoilage in units Abnormal spoilage in units Abnormal spoilage Normal spoilage Potential savings Comments on answer: 0 $0 Problem 2 Part 1: The two alternative approaches to account for the materials costs of reworked units are as follows Part 2: Answer part 2 below: Part 3: The total costs of rework due to the defective circulation motors include the following: a) b) C) d) of reworked units are as follows: clude the following: Reworked units, costs of rework Problem 3 oovveerrhhaaddllooccatteedd oovveerrhhaaddlloocctteed Scrap, job Part 1: Journal entry to record scrap generated by a specific job and accounted for at the time Account Part 2 Scrap common to various jobs and accounted for at the time of its sale can be accounted for in tw Account Account Part 3: Journal entry to record scrap common to various jobs at the time scrap is returned to storeroom: Account eeaaddllooccatteedd eeaaddlloocctteed Scrap, job costing ntry to record scrap generated by a specific job and accounted for at the time scrap is sold is as follows: Description Debit Credit mon to various jobs and accounted for at the time of its sale can be accounted for in two ways: Description Debit Credit Description Debit Credit Debit Credit try to record scrap common to various jobs at the time scrap is returned to storeroom: Description Problem 4 Part 1: oovveerrhhaaddllooccaatteedd oovveerrhhaaddlloocctteedd Spoilage in Normal spoilage rate= Units of normal spoilage ÷ Total good units completed Normal Spoilage rate = Part 2 a Journal entry for spoilage related to a specific job: Account Part 2 b Journal entry for spoilage common to all jobs: Account Part 2 c: Journal entry for abnormal spoilage: Account aaddllooccaatteedd aaddlloocctteedd Spoilage in job costing ge rate= Units of normal spoilage ÷ Total good units completed r spoilage related to a specific job: Description Debit Credit Debit Credit Debit Credit r spoilage common to all jobs: Description r abnormal spoilage: Description ...
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