Hell's Kitchen produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a journal entry to record this event and do the following: Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job. Calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning. Are unit costs the same in requirements 3a and 3b?
Hell's Kitchen produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a journal entry to record this event and do the following: Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job. Calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning. Are unit costs the same in requirements 3a and 3b?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
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Hell's Kitchen produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage.
Tasters rejected 420 cases that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost $420. Prepare a
- Calculate the unit cost of all the cases if this additional cost was incurred because of the exacting specifications of this particular job.
- Calculate the unit cost of all the cases if this additional cost occurs regularly because of difficulty in seasoning.
- Are unit costs the same in requirements 3a and 3b?
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