Carriage Florists Operate a Flower Shop

question 144

Essay

Carriage Florists operate a flower shop.Because most of the orders are via telephone, fax or email, numerous orders have to be reworked.The average cost of the reworked orders is $4: $2.50 for labour, $1 for more flowers, and $0.50 for overhead.This ratio of costs holds for the average original order and includes a provision for rework common to all jobs.On a recent day the shop reworked 32 orders out of 166.The original cost of the 32 orders totalled $480.The average cost of all orders is $12.50, including rework, with an average selling price of $20.Required:
Prepare the necessary journal entry, or entries, 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:

"Easy" Babies

infants who are generally calm, adapt quickly to new situations, have predictable patterns, and are not easily upset.

Labor-Intensive

Describing a process or type of work that requires a large amount of manual labor compared to the amount of capital invested or technology used.

High-Maintenance

Describing something or someone requiring a lot of time, attention, or resources to manage or maintain.

Moderately Labor-Intensive

Describing activities or processes that require a fair amount of human labor to complete.