Coral Reef Machine Shop is a manufacturer of motorized carts for vacation resorts. Pat Cruz,...

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Accounting

Coral Reef Machine Shop is a manufacturer of motorized carts for vacation resorts. Pat Cruz, the plant manager of Coral Reef, obtains the following information for Job #10 in August. A total of 46 units were started, and 5 spoiled units were detected and rejected at final inspection, yielding 41 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,150 per unit. The current disposal price of the spoiled units is $205 per unit. When the spoilage is detected, the spoiled goods are inventoried at $205 per unit.
Assume that the five spoiled units of Coral Reef Machine Shop's Job #10 can be reworked for a total cost of $1,600. A total cost of $5,750 associated with these units has already been assigned to Job #10 before the rework.
Read the requirements.
Requirement 1a. Prepare the journal entry to record the rework, assuming the rework is related to a specific job. (Record debits first, then credits. Explanations are not required. Leave unused cells blank. Abbreviations used: Wages Pay. Control = Wages Payable Control, Mfg. Overhead Allocated = Manufacturing Overhead Allocated.)
\table[[Date,Accounts,Debit,Credit],[,,,],[,,,],[,,,],[,||,,]]
Requirement 1b. Prepare the journal entry to record the rework, assuming the rework is common to all jobs. (Record debits first, then credits. Explanations are not required. Leave unused cells blank. Abbreviations used: Wages Pay. Control = Wages Payable Control, Mfg. Overhead Allocated = Manufacturing Overhead Allocated.)
Requirement 1c. Prepare the journal entry to record the rework, assuming the rework is considered to be abnormal. (Record debits first, then credits. Explanations are not required. Leave unused cells blank. Abbreviations used: Wages Pay. Control = Wages Payable Control, Mfg. Overhead Allocated = Manufacturing Overhead Allocated .)
\table[[Date,Accounts,Debit,Credit]]
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