Recording Scrap and Spoilage. Foxx Metal Works Inc. is a special order manufacturer of metal products. Each period the company accumulates fairly large quantities of metal shavings and trimmings from the products it manufactures. At least once a month, the scrap metal is sold to a local scrap-metals dealer. This month scrap sales for shavings and trimmings not traceable to any particular jobs total $550. In addition, during the current period 200 metal door facings were cut to an incorrect size on job number 492 and had to be replaced. Although the defective facings cannot be used on job 492, they can be sold as salvage for $2.25 each. The cost of cutting the 200 defective facings is: LO6 Materials (1,200 square feet of sheet metal x $1 each). $1,200 Labor (10 hours x $15.00 perhour). 150 Factory overhead (10 hours x $45.00 perhour). 450 Total cost of scrap on job number492. $1,800 Required:

(1) Prepare the appropriate general journal entry to credit job number 492 for the cost of the spoiled door fac¬ ings and to record the transfer of the spoiled door facings to Spoiled Goods Inventory at their salvage value.

(2) Prepare the appropriate general journal entry to record the sale on account of all the scrap accumulated during the period (i.e., the shavings and trimmings accumulated during the period) and the spoiled goods in inventory (i.e., the spoiled door facings inventoried in requirement 1).