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The Peric Manufacturing Shop Produces Motorcycle Parts

Question 108

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The Peric Manufacturing Shop produces motorcycle parts.Typically,17 pieces out of a job lot of 1200 parts are spoiled.Costs are assigned at the inspection point,$60.00 per unit.Spoiled pieces may be disposed at $8.00 per unit.The spoiled goods must be inventoried appropriately when the normal spoilage is detected.The current job requires the production of 3600 good parts.
Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101?
The Peric Manufacturing Shop produces motorcycle parts.Typically,17 pieces out of a job lot of 1200 parts are spoiled.Costs are assigned at the inspection point,$60.00 per unit.Spoiled pieces may be disposed at $8.00 per unit.The spoiled goods must be inventoried appropriately when the normal spoilage is detected.The current job requires the production of 3600 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101?

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