Write journal entries to record normal and abnormal rework

Reference no: EM131977280

Problem

Sony Corporation manufactures a sophisticated controller that is compatible with a variety of gaming consoles. Excluding rework costs, the cost of manufacturing one controller is $240. This consists of $140 in direct materials, $26 in direct manufacturing labor, and $76 in manufacturing overhead. It costs Page $72 to rework each defective controller, including $24 in direct materials, $20 in direct manufacturing labor, and $30 in manufacturing overhead.

In July 2014, Page manufactured 1000 controllers, 80 of which required rework. Of these 80 controllers, 50 were considered normal rework common to all jobs and the other 30 were considered abnormal rework.

Requirement: Write journal entries to record both the normal and abnormal rework.

Reference no: EM131977280

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