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Requirement 3

Heyer Appliances was able to rework all 60 dishwashers by substituting new circulation motors purchased from one of its existing suppliers. Each replacement motor cost $125. Read the requirements. Requirement 1. What alternative approaches are there to account for the materials cost of reworked units? (Select all that apply.) A. To charge the costs of rework to manufacturing overhead as normal rework. 3. To charge the costs of rework to the Wages Payable Control account as normal rework. .. To charge the costs of rework to the current period as a separate expense item as abnormal rework. ). To charge the costs of rework to the Materials Control account as abnormal rework. Requirement 2. Should Heyer Appliances use the $110 circulation motor or the $125 motor to calculate the cost of materials reworked? Explain. Heyer Appliances should use the motor cost because it is a. b. C. d. a. Any higher price the existing supplier may have charged to do a rush order for the replacement circulation motors. b. Ordering costs for the replacement circulation motors. c. The cost of employee training to avoid spoilage. d. The cost of equipment upgrades to avoid spoilage. a. The costs of any extra negotiations to obtain the replacement circulation motors. b. The disposal value of the defective units. c. The labor and other conversion costs spent on substituting the new circulation motors. d

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