Wilted and Weathered operate a flower shop. Because most of their orders are via telephone,...
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Wilted and Weathered operate a flower shop. Because most of their orders are via telephone, numerous orders have to be reworked. The average cost of the reworked orders is $8 ($5 for labour, $2 for more flowers, and $1 for overhead). This ratio of costs holds for the average order. On a recent day the shop reworked 16 orders out of 83. The average cost of all orders is $25 per order, with an average selling price of $40. REQUIRED: 1. Prepare the necessary journal entry to record the rework if it is considered normal and common to all jobs. What is the cost per order? 2. Assume instead that the 83 orders (units) was for one customer, Dying to Get In Funeral Home, and that 10 of the 16 spoiled units were considered normal. The spoiled units can be sold for $3 each. Prepare the necessary journal entry(ies) if the spoiled units are attributable to Dying to Get In. What would be the cost per unit
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