Dynalia Florists Operate a Flower Shop

question 101

Essay

Dynalia Florists operate a flower shop. Because most of their orders are via telephone or fax, numerous orders have to be reworked. The average cost of the reworked orders is $5.25: $3.50 for labor, $1.25 for more flowers, and $0.50 for overhead. This ratio of costs holds for the average original order. On a recent day, the shop reworked 40 orders out of 250. The original cost of the 40 orders totaled $700. The average cost of all orders is $18.34, including rework, with an average selling price of $25.
Required:
Prepare the necessary journal entry to record the rework for the day if the shop charges such activities to Arrangement Department Overhead Control. Prepare a journal entry to transfer the finished goods to Finished Goods Inventory.

---

Definitions:

Pronunciation

Pronunciation refers to the way in which a word or language is spoken, or the manner in which someone utters a word.

Communication Skills

The ability to convey or share ideas and feelings effectively through oral, written, visual, or non-verbal means.

Positive Image

The perception or representation of someone or something in an optimistic and favorable way.

Telephone Etiquette

The set of norms, behaviors, and procedures used when communicating on the phone, ensuring courteous and professional interaction.