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Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
Edition 6ISBN: 978-0078025532 Exercise 11
Spoilage and Scrap (appendix)
Lexan Textile Company's Job X12 had one of its 20 units spoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimated disposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $400 from the general production process failure and abnormal spoilage of $200. The company also incurred scrap due to Job Y34 and sold it for $80. It also sold the scrap common to all jobs for $120 cash in May.
Required
1. Make the necessary journal entries to record normal and abnormal spoilage costs.
2. Make the necessary journal entries to record both types of scrap sold.
Lexan Textile Company's Job X12 had one of its 20 units spoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimated disposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $400 from the general production process failure and abnormal spoilage of $200. The company also incurred scrap due to Job Y34 and sold it for $80. It also sold the scrap common to all jobs for $120 cash in May.
Required
1. Make the necessary journal entries to record normal and abnormal spoilage costs.
2. Make the necessary journal entries to record both types of scrap sold.
Explanation
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Job Costing:
Job Costing is the one of ...
Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins
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