Springfield Sign Shop manufactures only specific orders.It uses a standard cost system.During one large order for the transit authority, an unusual number of signs were spoiled.The normal spoilage rate is 10% of units started.The point of first inspection is half way through the process, the second is three-fourths through the process, and the final inspection is at the end of the process.Other information about the job is as follows:
Average point of spoilage is the 3/4 completion point
Required:
Make necessary journal entries to record all transactions related to the transit authority job.

Question

Springfield Sign Shop manufactures only specific orders.It uses a standard cost system.During one large order for the transit authority, an unusual number of signs were spoiled.The normal spoilage rate is 10% of units started.The point of first inspection is half way through the process, the second is three-fourths through the process, and the final inspection is at the end of the process.Other information about the job is as follows:
   Average point of spoilage is the 3/4 completion point
  Required:
Make necessary journal entries to record all transactions related to the transit authority job.

Quizplus · Accepted Answer

The Answer of Springfield Sign Shop manufactures only specific orders.It uses a standard cost system.During one large order for the transit authority, an unusual number of signs were spoiled.The normal spoilage rate is 10% of units started.The point of first inspection is half way through the process, the second is three-fourths through the process, and the final inspection is at the end of the process.Other information about the job is as follows:
   Average point of spoilage is the 3/4 completion point
  Required:
Make necessary journal entries to record all transactions related to the transit authority job.

Springfield Sign Shop Manufactures Only Specific Orders