Accounting for spoiled goods. Job 451 was completed on June 25, 19X7. The job was for 300 chairs ordered by the Davenport Company. The job cost sheet shows the following costs incurred:

Materials $6,390 Labor—Milling 2,466 Labor—Assembling 1,875 Labor—Finishing 1,950 Overhead—Milling 2,091 Overhead—Assembling 1,594 Overhead—Finishing 1,658 Upon inspection, 24 chairs were found to be spoiled and could be sold as seconds for $45 each.

a. Prepare the general journal entry to establish the spoiled goods inventory, assuming that the loss is charged to Manufacturing Overhead.

b. Determine the amount of the credits to be recorded in the individual cost element columns of the job cost sheet for Job 451.