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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 35
COST OF ABNORMAL SPOILAGE
Refer to the data in Cornerstone Exercise 5-4. Now Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Gavins. Bastera had warned them that the chosen piece could require much more care and potentially additional work. As a result, Bastera considers this to be abnormal spoilage.
Required:
1. Calculate the cost of the Gavin job.
2. Make any needed journal entry to the overhead control account.
3. What if the additional rework required $200 of direct labor? What would be the affect on the cost of the Gavin job?
Refer to the data in Cornerstone Exercise 5-4. Now Assume that the spoilage was due to the inherently fragile nature of the piece of stone picked out by the Gavins. Bastera had warned them that the chosen piece could require much more care and potentially additional work. As a result, Bastera considers this to be abnormal spoilage.
Required:
1. Calculate the cost of the Gavin job.
2. Make any needed journal entry to the overhead control account.
3. What if the additional rework required $200 of direct labor? What would be the affect on the cost of the Gavin job?
Explanation
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We are given the cost related to a Job b...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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