Reference no: EM132681564

Question - Dax Rigging manufactures pulley systems to customize specifications and uses a job order system, Bend Mechanical recently ordered 10,000 pulleys, and the job was assigned BA 458. Information for the job were as follows:

Direct Material Php 20,000

Direct Labor 24,600

Mfg Overhead 18,400

Final inspection of thee pulleys revealed that 230 were defective. In correcting the defects, an additional Php 850 of cost was incurred (150 for DM and 750 for DL)

After the defects were corrected, the pulleys were included with the other good units and shipped to the customer.

Required -

a. Journalize the entry to record incurrence of the rework costs if rework is normal but specific to this job.

b. Journalize the entry to record incurrence of the rework costs if Dax predermined overhead rate includes normal rework costs.

c. Journalize the entry to record incurrence of the rework costs, assuming that all reworks is abnormal.