The Reardon Company manufactures novelty toys. In June, 400 of these toys were completed on Job Order No. 2525. On final inspection, 20 toys were rejected and transferred to the spoiled goods inventory to be sold at $2 each.
Costs recorded on Job Order No. 2525 follow: Prepare the journal entries to record the following:
a.Charges for materials, labor, and factory overhead for Job Order No. 2525
b.Cost of the spoiled work, the transfer of the cost of the good toys to Finished Goods, and the sale of the imperfect toys, if the loss on spoilage is charged to all jobs worked on during the period
c.Cost of the spoiled work, the transfer of the cost of the good toys to Finished Goods, and the sale of the imperfect toys, if the loss on spoilage is to be charged to Job Order No. 2525 only. (Round the new unit cost to the nearest whole cent, and assume part b, above, has not occurred.)

Question

The Reardon Company manufactures novelty toys. In June, 400 of these toys were completed on Job Order No. 2525. On final inspection, 20 toys were rejected and transferred to the spoiled goods inventory to be sold at $2 each.
Costs recorded on Job Order No. 2525 follow:  Prepare the journal entries to record the following: 
a.Charges for materials, labor, and factory overhead for Job Order No. 2525
b.Cost of the spoiled work, the transfer of the cost of the good toys to Finished Goods, and the sale of the imperfect toys, if the loss on spoilage is charged to all jobs worked on during the period
c.Cost of the spoiled work, the transfer of the cost of the good toys to Finished Goods, and the sale of the imperfect toys, if the loss on spoilage is to be charged to Job Order No. 2525 only. (Round the new unit cost to the nearest whole cent, and assume part b, above, has not occurred.)

Quizplus · Accepted Answer

The Answer of The Reardon Company manufactures novelty toys. In June, 400 of these toys were completed on Job Order No. 2525. On final inspection, 20 toys were rejected and transferred to the spoiled goods inventory to be sold at $2 each.
Costs recorded on Job Order No. 2525 follow:  Prepare the journal entries to record the following: 
a.Charges for materials, labor, and factory overhead for Job Order No. 2525
b.Cost of the spoiled work, the transfer of the cost of the good toys to Finished Goods, and the sale of the imperfect toys, if the loss on spoilage is charged to all jobs worked on during the period
c.Cost of the spoiled work, the transfer of the cost of the good toys to Finished Goods, and the sale of the imperfect toys, if the loss on spoilage is to be charged to Job Order No. 2525 only. (Round the new unit cost to the nearest whole cent, and assume part b, above, has not occurred.)

The Reardon Company Manufactures Novelty Toys