Boss Manufacturing generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product. What is the appropriate journal entry if 500 units are considered abnormal spoilage in a job costing system?

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The Answer of Boss Manufacturing generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Disposal fees typically run $5.00 per item. Boss has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product. What is the appropriate journal entry if 500 units are considered abnormal spoilage in a job costing system?

Boss Manufacturing Generally Has Spoiled Goods During Each Job