Solution-Create the journal entry to record the rework

Create the journal entry to record the rework

Assignment Help Cost Accounting

Reference no: EM132806455

Question - Sanchez Company manufactures and distributes children games. Sometimes its orders have to be reworked. The average cost of the reworked orders is $16.50: $7.50 for labor, $6.00 for more materials, and $3.00 for overhead. This ratio of costs holds for the average original order. On a recent day, the shop reworked 100 orders. The original cost of the 100 orders totaled $2,400. Create the journal entry to record the rework assuming it is charged to overhead. Also, prepare the journal entry to transfer the reworked items to finished goods inventory.

Reference no: EM132806455

Questions Cloud

What is the amount of cash received : The issue price of the stock is $20 per share. What is the amount of cash received from the issuance of common stock (ordinary shares)

How should the payment of dividends be classified : How should the payment of dividends be classified? Why is interest expense classified as an operating activity even though it arises from borrowing money?

Possible explanation for stacey behavior : Stacey was invited to become a member of the class project team because the other members knew she had a high GPA and worked hard

What must company x do to adhere to the act : Briefly describe the stipulations of the CAN-SPAM Act with regards to Company X. In other words, what must Company X do to adhere to the act?

Create the journal entry to record the rework : On a recent day, the shop reworked 100 orders. The original cost of the 100 orders totaled $2,400. Create the journal entry to record the rework

Photos of the employees-of-the-month : Which of the following is an example of a corporate ritual? Joe and Ed swap stories about the company's history and past heroes who have made significant contri

Do believe that stock prices currently reflect : What if the company has a new secret product that will guarantee future success for the company and no one knows about it?

How much should be the timing differences : Payment of tax penalty, fine and surcharge120,000 Insurance premium on life of an officer with Milan as beneficiary 240,000. How much should timing differences

How would the transaction effect c company debt-to-equity : How would the transaction effect C Company's debt-to-equity ratio? Assume the debt-to-equity ratio was 75% before recording the transaction.

User Account

All Pages

Create the journal entry to record the rework

Reference no: EM132806455

Reference no: EM132806455

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT