Refer to the information in Exercise 6.26. Information From Exercise 6.26 Rejected castings in a foundry are
Question:
Information From Exercise 6.26
Rejected castings in a foundry are treated as spoilage. During the current period, 80 castings (costing $200 each to produce) were spoiled and sold at a net realizable value of $25 each.
REQUIRED
A. Prepare the journal entry for abnormal spoilage.
B. Prepare the journal entry, assuming that the spoilage was abnormal.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
A When spoiled units are sold the net realizable value offsets the cost In this case the to...View the full answer
Answered By
Divya Munir
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
0 Reviews
10+ Question Solved
Related Book For 
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
Question Posted:
