Carriage Florists operate a flower shop. Because most of the orders are via telephone, fax or email, numerous orders have to be reworked. The average cost of the reworked orders is $4: $2.50 for labour, $1 for more flowers, and $0.50 for overhead. This ratio of costs holds for the average original order. On a recent day the shop reworked 32 orders out of 166. The original cost of the 32 orders totalled $480. The average cost of all orders is $12.50, including rework, with an average selling price of $20.
Required:
Prepare the necessary journal entry, or entries, to record the rework for the day if the shop charges such activities to Arrangement Department Overhead Control. Prepare a journal entry to transfer the finished goods to Finished Goods Inventory.

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The Answer of Carriage Florists operate a flower shop. Because most of the orders are via telephone, fax or email, numerous orders have to be reworked. The average cost of the reworked orders is $4: $2.50 for labour, $1 for more flowers, and $0.50 for overhead. This ratio of costs holds for the average original order. On a recent day the shop reworked 32 orders out of 166. The original cost of the 32 orders totalled $480. The average cost of all orders is $12.50, including rework, with an average selling price of $20.
Required:
Prepare the necessary journal entry, or entries, to record the rework for the day if the shop charges such activities to Arrangement Department Overhead Control. Prepare a journal entry to transfer the finished goods to Finished Goods Inventory.

Carriage Florists Operate a Flower Shop