Crystal Clear Machine Shop is a manufacturer of golf carts. Peter Cranston, the plant manager...

50.1K

Verified Solution

Question

Accounting

imageimageimage

Crystal Clear Machine Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Crystal Clear Machine, obtains the following information for Job \#22 in August 2020 . A total of 23 units were started, and 3 spoiled units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,200 per unit. The current disposal price of the spoiled units is $245 per unit. When the spoilage is detected, the spoiled goods are inventoried at $245 per unit. Read the requirements. Requirement 1. What Requirements Select the formula, ther 1. What is the normal spoilage rate? 2. Prepare the journal entries to record the normal spoilage, assuming the following: Requirement 2. Prepa: a. The spoilage is related to a specific job. specific job. b. The spoilage is common to all jobs. c. The spollage is a. The spoilage is relate b. The spoilage is common to all jobs. c. The spoilage is considered to be abnormal spoilage. b. The spoilage is common to all jobs. Crystal Clear Machine Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Crystal Clear Machine, obtains the following information for Job \#22 in August 2020 . A total of 2 . units were started, and 3 spoiled units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,200 per unit. The current disposal price of the spoiled units is $245 per unit. When the spoilage is detected, the spoiled goods are inventoried at $245 per unit. Read the Requirement 1. What is the normal spoilage rate? Select the formula, then calculate the normal spoilage rate. (Round the percentage to the nearest tenth percent, X.X%.) =Normalspoilagerate=% Requirement 2. Prepare the joumal entries to record the normal spoilage, assuming the following: a. The spoilage is related to a specific job. b. The spoilage is common to all jobs. c. The spoilag. considered to be abnormal spoilage. (Record debits first, then credits. Exclude explanations from any journal entries.) a. The spoilage is related to a specific job. b. The spoilage is common to all jobs. Crystal Clear Machine Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Crystal Clear Machine, obtains the following information for Job \#22 in August 2020 . A total of 23 units were started, and 3 spoiled units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,200 per unit. The current disposal price of the spoiled units is $245 per unit. When the spoilage is detected, the spoiled goods are inventoried at $245 per unit. Read the b. The spoilage is common to all jobs. c. The spoilage is considered to be abnormal spoilage

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students