Recording spoiled goods. During the month of November 19X6, the following events involving losses from spoilage took place at the Lombardo Tool Company.

On November 8 the control mechanism on an automatic machine became defective while Job 384 for 200 units was in production. As a result, nine units for which materials had cost $198 were spoiled. Estimated sales value as seconds is $55 each.

Total costs accumulated to date on the order are: materials, $6,600; direct labor,

$10,800; and manufacturing overhead, $5,400.

Instructions 1. Give the general journal entry to have the loss on the nine spoiled units absorbed by Job 384.

2. Compute the allocation of the estimated market value of the nine spoiled items to the individual cost elements on Job 384.

3. The spoiled items were later sold on November 29 for $400 cash. Give the general journal entry to record this sale.