Solved: David Mfg Company manufactures an integrated

transistor circuit
David Mfg Company manufactures an integrated transistor circuit

David Mfg. Company manufactures an integrated transistor circuit board for repeat customers
but also accepts special orders for the same product. Job No. MS1 incurred the following unit
costs for 1,000 circuit boards manufactured:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6.00
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00
Total cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . $11.00
When the completed products were tested, 50 circuit boards were found to be defective. The
costs per unit of correcting the defects follow:
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.00
Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.00
Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00
Record the journal entry for the costs to correct the defective work:
a. If the cost of the defective work is charged to factory overhead.
b. If the cost of the defective work is charged to the specific job.

David Mfg Company manufactures an integrated transistor circuit

ANSWER
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