Recording Spoilage Attributable to an Internal Failure. Miller Wood Products Company manufactures custom wooden cabinets and furniture. During the current period, 80 table legs were incorrectly shaped on job number 5587 in the Lathe Department and had to be replaced. Although the defective table legs cannot be used on the job, they can be sold to a local lumber company for $1 each. The cost of the 80 defective table legs is: LO6 Materials (80 legs x $2.50each). $200 Labor (2 hours x $12.00 perhour). 24 Factory overhead (2 hours x $24.00 perhour). 48 Total cost of spoilage on job number5587. $272 Required: Give the appropriate general journal entry to record spoilage cost and the transfer of the spoiled goods to a separate inventory account.