
The Peric Manufacturing Shop produces motorcycle parts. Typically, 22 pieces out of a job lot of 1800 parts are spoiled. Spoilage is considered a normal part of Peric's production process. Costs are assigned at the inspection point, $52.00 per unit. Spoiled pieces may be disposed at $16.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3600 good parts.
Which of the following journal entries properly reflects the recording of spoiled goods?
A)
B)
C)
D)
Correct Answer:
Verified
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