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The Hawg Manufacturing Shop Produces Motorcycle Parts

Question 84

Multiple Choice

The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of for proceeds of $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101?


A) The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of for proceeds of $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? A) B) C) D) E)
B) The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of for proceeds of $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? A) B) C) D) E)
C) The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of for proceeds of $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? A) B) C) D) E)
D) The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of for proceeds of $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? A) B) C) D) E)
E) The Hawg Manufacturing Shop produces motorcycle parts. Typically, 20 pieces out of a job lot of 2,000 parts are normally spoiled. Costs are assigned at the inspection point, $100.00 per unit. Spoiled pieces may be disposed of for proceeds of $20.00 per unit. When the normal spoilage is detected, the spoiled goods must be inventoried appropriately. The current job requires the production of 5,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? A) B) C) D) E)

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