Hogan Ltd.uses a standard cost system in its manufacturing process.During a recent job, it noticed that its spoilage rate was high.Normal spoilage rate averages 8% of units started.Direct materials are added at the beginning of the process.Inspection occurs at the 75% point.Other information about the job follows:
Spoiled units have no salvage value.Required:
Make necessary journal entries to record all spoilage.

Question

Hogan Ltd.uses a standard cost system in its manufacturing process.During a recent job, it noticed that its spoilage rate was high.Normal spoilage rate averages 8% of units started.Direct materials are added at the beginning of the process.Inspection occurs at the 75% point.Other information about the job follows:
   Spoiled units have no salvage value.Required:
Make necessary journal entries to record all spoilage.

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The Answer of Hogan Ltd.uses a standard cost system in its manufacturing process.During a recent job, it noticed that its spoilage rate was high.Normal spoilage rate averages 8% of units started.Direct materials are added at the beginning of the process.Inspection occurs at the 75% point.Other information about the job follows:
   Spoiled units have no salvage value.Required:
Make necessary journal entries to record all spoilage.

Hogan LtdUses a Standard Cost System in Its Manufacturing Process