its is $215 per unit. When the spoilage is detected, the spoiled goods are inventoried at $215 pe www ormal spoilage rate? ate the normal spoilage rate. (Round the percentage to the nearest tenth percent, X.X%.) Total good units completed = Normal spoilage rate 20 15.0 %

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
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I need requirement 2 please.

Paradise Bay Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay, obtains the following information for Job #22 in August 2020. A total of 23 units were started, and 3 spoiled
units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,300 per unit. The current
disposal price of the spoiled units is $215 per unit. When the spoilage is detected, the spoiled goods are inventoried at $215 per unit.
Read the requirements.
Requirement 1. What is the normal spoilage rate?
Select the formula, then calculate the normal spoilage rate. (Round the percentage to the nearest tenth percent, X.X%.)
Units of normal spoilage
3
÷
Total good units completed =
20
Journal Entry
=
Accounts
Normal spoilage rate
15.0 %
Requirement 2. Prepare the journal entries to record the normal spoilage, assuming the following: a. The spoilage is related to a specific job. b. The spoilage is common to all jobs. c. The spoilage is
considered to be abnormal spoilage. (Record debits first, then credits. Exclude explanations from any journal entries.)
a. The spoilage is related to a specific job.
(...)
Debit
Credit
Transcribed Image Text:Paradise Bay Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay, obtains the following information for Job #22 in August 2020. A total of 23 units were started, and 3 spoiled units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,300 per unit. The current disposal price of the spoiled units is $215 per unit. When the spoilage is detected, the spoiled goods are inventoried at $215 per unit. Read the requirements. Requirement 1. What is the normal spoilage rate? Select the formula, then calculate the normal spoilage rate. (Round the percentage to the nearest tenth percent, X.X%.) Units of normal spoilage 3 ÷ Total good units completed = 20 Journal Entry = Accounts Normal spoilage rate 15.0 % Requirement 2. Prepare the journal entries to record the normal spoilage, assuming the following: a. The spoilage is related to a specific job. b. The spoilage is common to all jobs. c. The spoilage is considered to be abnormal spoilage. (Record debits first, then credits. Exclude explanations from any journal entries.) a. The spoilage is related to a specific job. (...) Debit Credit
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