Spoilage and Scrap (Appendix) Lexan Textile Company’s Job X12 had one of its 20 unitsspoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimateddisposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimatedcost 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 jobsfor $120 cash in May.Required1. 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.
Spoilage and Scrap (Appendix) Lexan Textile Company’s Job X12 had one of its 20 unitsspoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimateddisposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimatedcost 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 jobsfor $120 cash in May.Required1. 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.
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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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
2. Make the necessary journal entries to record both types of scrap sold.
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