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Question - McNight Handcraft manufactures window frames using a job costing system. During March, the following costs are incurred on Job 120 to manufacture 400 frames:
Original Costs:
Direct Materials $13,200
Direct Labour 16,000
Manufacturing Overhead Allocated 24,000
TOTAL $53,200
Direct costs of reworking 10 frames:
Direct materials $2,000
Direct labour 3,200
TOTAL $ 5,200
Required -
a. Prepare the journal entry to record the rework costs, assuming the rework is attributable specifically to Job 120.
b. Compute the cost per finished window frame for Job 120, assuming the reword is attributable specifically to this job.
c. Prepare the journal entry to record the rework costs, assuming the rework is common to all jobs.
d. Compute the cost per finished window frame for Job 120, assuming the rework is common the all jobs.
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