Bluefish Machine Shop is a manufacturer of motorized cars for golf clubs.Leona Pez, the plant manager of Bluefish, obtained the following information for Job #99 in July 2018.A total of 50 units were started, and 3 spoiled units were detected and rejected at final inspection.The spoiled units were considered to be normal spoilage.Costs prior to the inspection point are $1,200 per unit.The current disposal price of the spoiled units is $600 per unit.When spoilage is detected, the spoiled units are inventoried at $600 per unit.Required:
1.Prepare journal entries to record the normal spoilage, assuming:
2.Assume that 2 spoiled units can be reworked for a total cost of $800.A total cost of $2,400 associated with these units has already been assigned to job #99 before the rework.Prepare journal entries for the rework assuming:

Question

Bluefish Machine Shop is a manufacturer of motorized cars for golf clubs.Leona Pez, the plant manager of Bluefish, obtained the following information for Job #99 in July 2018.A total of 50 units were started, and 3 spoiled units were detected and rejected at final inspection.The spoiled units were considered to be normal spoilage.Costs prior to the inspection point are $1,200 per unit.The current disposal price of the spoiled units is $600 per unit.When spoilage is detected, the spoiled units are inventoried at $600 per unit.Required:
1.Prepare journal entries to record the normal spoilage, assuming:
  2.Assume that 2 spoiled units can be reworked for a total cost of $800.A total cost of $2,400 associated with these units has already been assigned to job #99 before the rework.Prepare journal entries for the rework assuming:

Quizplus · Accepted Answer

The Answer of Bluefish Machine Shop is a manufacturer of motorized cars for golf clubs.Leona Pez, the plant manager of Bluefish, obtained the following information for Job #99 in July 2018.A total of 50 units were started, and 3 spoiled units were detected and rejected at final inspection.The spoiled units were considered to be normal spoilage.Costs prior to the inspection point are $1,200 per unit.The current disposal price of the spoiled units is $600 per unit.When spoilage is detected, the spoiled units are inventoried at $600 per unit.Required:
1.Prepare journal entries to record the normal spoilage, assuming:
  2.Assume that 2 spoiled units can be reworked for a total cost of $800.A total cost of $2,400 associated with these units has already been assigned to job #99 before the rework.Prepare journal entries for the rework assuming:

Bluefish Machine Shop Is a Manufacturer of Motorized Cars for Golf