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Accounting for scrap Accounting for scrap

predetermined overhead rate for the year:

a$.$ What was the predetermined overhead rate $($set on the basis of direct labor hours$)$ for the year? $

per DLH

b$.$ What was the cost of the Pierce stained glass window? $

c$.$ Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.

To record disposal value of spoiled work incurred on Job XX $($stained glass window$)$

d$.$ Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?

Note: Round your final answer to the nearest whole dollar.

$$0$

Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately $72,000$ direct labor hours during the year. The following estimates are made in setting the predetermined overhead rate for the year:

Overhead costs other than breakage $$475,520$

Estimated cost of scrap $$40,320$

Estimated sales value of scrap $(11,840)28,480$

Total estimated overhead $$504,000$

One job that Renaissance Creations completed during the year was a stained glass window of the Pierce family crest that took $200$ hours, and direct labor is invoiced at $$20$ per hour. Total direct material cost for the job was $$1,424.$ Scrap that was generated from this job was sold for $$149.$

a$.$ What was the predetermined overhead rate $($set on the basis of direct labor hours$)$ for the year? $Answer $1$

$0$

per DLH

b$.$ What was the cost of the Pierce stained glass window? $Answer $2$

$0$

c$.$ Prepare the journal entry to record the sales value of the scrap from the Pierce stained glass window.

Account Debit Credit

Answer $3$

Answer $4$

$0$

Answer $5$

$0$

Answer $6$

Answer $7$

$0$

Answer $8$

$0$

To record disposal value of spoiled work incurred on Job XX $($stained glass window$)$

d$.$ Assume instead that only certain jobs generate scrap. What was the cost of the Pierce stained glass window?

Note: Round your final answer to the nearest whole dollar.

$Answer $9$

$0$

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