Which of the following journal entries is correct if scrap is incurred and sold for all jobs in common in the amount of $600?

Question

Quizplus · Accepted Answer

Since the scrap is incurred and sold for all jobs in common, it should be credited to the Manufacturing Overhead account instead of a specific job. Option C correctly reflects this by debiting the Manufacturing Overhead account and crediting the Scrap Sales account for $600. Options A, B, and D incorrectly assign the credit to specific job costing accounts.

Which of the Following Journal Entries Is Correct If Scrap