StatPro Corporation
StatPro Corporation Is a Manufacturer of a Versatile

question 31

Multiple Choice

StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
$\begin{array}{ll}\text { Total defective units } & 1,000 \\\text { Number of units reworked } & 750 \\\text { Number of customer units returned } & 150 \\\text { Profit for a good unit } & \$ 40 \\\text { Profit for a defective unit } & \$ 25 \\\text { Cost to rework a defective unit } & \$ 10 \\\text { Cost of a returned unit } & \$ 15 \\\text { Total prevention cost } & \$ 10,000 \\\text { Total appraisal cost } & \$ 5,000\end{array}$

Refer to StatPro Corporation.The total rework cost is

• A)$7,500.
• B)$15,000.
• C)$2,500.
• D)$3,750.

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Definitions:

General Journal

A primary accounting record where all types of financial transactions are initially recorded in chronological order before being posted to specific accounts in the general ledger.

Cash Receipts Journal

A specific financial journal used in accounting to record all cash inflows to a business.

Sales Journal

A specialized accounting ledger that records all sales transactions of a business, typically for goods or services on credit.

Cash Receipts Journal

A specialized accounting journal used to keep track of all cash inflows or receipts of a business.