Robotoys Incorporated Manufactures and Distributes Small Robotic Toys

question 39

Essay

Robotoys Incorporated manufactures and distributes small robotic toys.Reworked units are common.The average cost of the reworked orders is $11.30: $4.15 for labour, $5.00 for more materials, and $2.15 for overhead.This ratio of costs holds for the average original order.On a recent day, the shop reworked 83 orders out of 700.The original cost of the 83 orders totaled $1,909.The average cost of all orders is $24.34, including rework, with an average selling price of $34.50.Required:
Prepare the necessary journal entry to record the rework for the day if the shop charges such activities to Robo Department Overhead Control.Prepare journal entries to record all relevant rework charges as well as to transfer the reworked items finished goods to Finished Goods Inventory.

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Definitions:

Social Responsibility Strategies

Practices and policies initiated by a company to benefit society and operate sustainably beyond its profit-making interests.

Consumer Protection Agency

A governmental organization designed to protect consumers' rights and ensure fairness in the marketplace.

Maximize Profits

The primary goal of many businesses, which involves increasing the difference between the revenue generated and costs incurred by enhancing efficiency and market share.

Ergonomically Appropriate

Referring to designs or adjustments in the workplace that support the health and well-being of workers, aligning with principles of ergonomics to ensure safety and efficiency.