CM Designs manufactures sportswear. During the month, the company produced 2,000 tops as part of Job...

CM Designs manufactures sportswear. During the month, the company produced 2,000 tops as
part of Job 9501.
Amounts charged to Job # 9501 for the month: Direct materials $24,000; Direct labor $6,000;
MOH $48,000
150 defective tops would be considered normal spoilage on a job of this size.
Tops that don't meet quality standards are sold as "seconds".
Regular sales price per top $ 69.95
Seconds sales price per top $ 15.95

1) Assume that 200 tops failed to meet quality control standards. How much should be charged
to Loss from Abnormal Spoilage assuming all 200 tops could be sold at the $15.95 price?
Spoilage was due to equipment malfunction (not related to the job).

Spoiled Goods Inventory ______________

MOH ______________

WIP ______________

Loss on abnormal spoilage ______________

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Expert Solution

ekkarill92 answered 1 year ago

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