Spoilage in a Job Order Cost System Attributable to Customer Change Order. Hargrove sheet Metal Works manufactures custom sheet metal products ranging from cabinets and storage containers to portable buildings and custom trailers. During the current period, an order for 500 custom storage containers was begun on job number 308 for Wilmington Air Freight. After 100 units had been completed, the customer decided to change the design specifications for the containers. The design change was successfully implemented on the 400 units that were not complete at the date of the change order; however, the 100 completed units could not be reworked to meet the customer’s new design requirements. As a consequence, an additional 100 units had to be manufactured (bringing the total number to 600, 500 that met the customers specifications and 100 that did not). The customer does not want the 100 units that do not meet its specifications; however, management of Hargrove Sheet Metal Works believes that the spoiled units can be sold in the seconds market for $100 each. Spoiled goods are kept in an inventory account that is separate from Finished Goods. Total costs charged to job number 308 for Wilmington Air Freight are: LO6 Materials. $ 50,000 Labor (1,200 hours x $15 perhour). 18,000 Factory overhead ($30 per laborhour). 36,000 Total cost charged to job number308. $104,000 Required: Determine the cost to be transferred to Spoiled Goods Inventory and the cost of the job shipped to the customer, and then prepare the appropriate general journal entry to record the transfer.