Register, Inc., had both defective units and scrap materials from Job No. 186. There were 70 defective units, 20 of which were abnormal. The scrap materials were sold for $125 and were not considered in the computation of the factory overhead application rate. mkiu74 Required:

a Prepare journal entries for the normal and abnormal defective units, assuming the following rework costs:

Normal rework costs are allocated to all jobs (included in the factory overhead application rate).
b Prepare journal entries for the sale of the scrap materials.

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Direct materials..... $105 Direct labor... 70 Factory overhead. Total 35 210