Boutin Company uses a job costing system. During October, the following costs are incurred on Job 110 to manufacture 200 motors:
Original costs:
Manufacturing overhead allocated
Direct cost of reworking 10 motors:
Required:
a. Prepare the journal entry to record the rework costs, assuming the rework is attributable specifically to Job 110.
b. Compute the cost per finished motor for Job 110, assuming the rework is attributable specifically to this job.
c. Prepare the journal entry to record the rework costs, assuming the rework is common to all jobs.
d. Compute the cost per finished motor for Job 110, assuming the rework is common to all jobs.

Question

Boutin Company uses a job costing system. During October, the following costs are incurred on Job 110 to manufacture 200 motors:
Original costs:
  Manufacturing overhead allocated
  Direct cost of reworking 10 motors:
  Required:
a. Prepare the journal entry to record the rework costs, assuming the rework is attributable specifically to Job 110.
b. Compute the cost per finished motor for Job 110, assuming the rework is attributable specifically to this job.
c. Prepare the journal entry to record the rework costs, assuming the rework is common to all jobs.
d. Compute the cost per finished motor for Job 110, assuming the rework is common to all jobs.

Quizplus · Accepted Answer

The Answer of Boutin Company uses a job costing system. During October, the following costs are incurred on Job 110 to manufacture 200 motors:
Original costs:
  Manufacturing overhead allocated
  Direct cost of reworking 10 motors:
  Required:
a. Prepare the journal entry to record the rework costs, assuming the rework is attributable specifically to Job 110.
b. Compute the cost per finished motor for Job 110, assuming the rework is attributable specifically to this job.
c. Prepare the journal entry to record the rework costs, assuming the rework is common to all jobs.
d. Compute the cost per finished motor for Job 110, assuming the rework is common to all jobs.

Boutin Company Uses a Job Costing System