Viti Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at...
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Viti 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. Viti 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? Viti 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. Viti 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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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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