Problem
Kwon Products, Inc. makes circuit boards. Job 11M (1,000 boards) had the following costs:
DM $12.00 per board
DL 6.00 per board
MOH 4.00 per board
$22.00 Total
When the boards were tested, 50 were found to be defective. The boards had to be sent out to an vendor for repair. The vendor charged $6.00 per board for the repairs.
a. If the 50 defects were found in multilple jobs worked on during the period, what's the journal entry to record the rework costs?
b. If all 50 defects were found in Job 11M, what's the journal entry to record the costs?
c. What's the final cost per circuit board in Job 11M if defects were not related specifically to Job 11M?
d. What's the final cost per circuit board in Job 11M if defects were related specifically to Job 11M?