Problem C CM Designs manufactures sportswear. During the month, the company prod

Question

Problem C CM Designs manufactures sportswear. During the month, the company produced 2,000 tops as part of Job 9501. Amounts charged to Job # 9501 for the month: Direct materials $24,000; Direct labor $6,000; MOH $48,000 150 defective tops would be considered normal spoilage on a job of this size. Tops that don't meet quality standards are sold as "seconds". Regular sales price per top $ Seconds sales price per top $ 69.95 15.95 a. 100 tops in the job did not pass quality control. What's the journal entry to record the spoilage if Job 9501 was a special order and the spoilage was related to customization?

Explanation / Answer

Journal Entry S. No Particular Debit Credit a. Material Control (100x $15.95) $1,595 Work in Process Control $1,595 ( To Record Normal Spoilage) $21,150 b. Material Control (100x $15.95) $1,595 Manufacturing Overhead Control $2,305 Work in progress (100*$39) 3900 ( To Record Normal Spoilage) c. Computation of loss from Abnormal Spoilage on per Top Loss per Top Sold as Second $23 No. of Top Considered as Abnormal Loss               200 Total Loss charged Loss from Abnormal Loss $4,610 Working Note Computation on Total loss on per Top Diect Material $24,000 Direct Labour $6,000 Manufacturing Overhead $48,000 Total Manufacturing Cost $78,000 Order Size 2000 Cost Per TOP $39 Second Sales Price Per TOP $15.95 Loss per Top Sold as Second $23.05

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.