Boss Cycle 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 Cycle has a policy never to rework spoiled units.Management believes that once a unit is damaged it cannot be reworked into a quality product.The losses are charged back to the specific job.
What is the appropriate journal entry if 300 units are considered abnormal spoilage and are not disposed of in a process costing system?

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The Answer of Boss Cycle 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 Cycle has a policy never to rework spoiled units.Management believes that once a unit is damaged it cannot be reworked into a quality product.The losses are charged back to the specific job.
What is the appropriate journal entry if 300 units are considered abnormal spoilage and are not disposed of in a process costing system?

Boss Cycle Generally Has Spoiled Goods During Each Job