Spoiled goods; loss charged to factory overhead; loss charged to job One of the tennis racquets that Game-Set-Match manufactures is a titanium model (Power Crunch) that sells for $149. The cost of each Power Crunch consists of:

Job 100 produced 100 Power Crunches, of which 6 racquets were spoiled and classified as seconds. Seconds are sold to discount stores for $50 each.
Required:
1. Under the assumption that the loss from spoilage will be distributed to all jobs produced during the current period, use general journal entries to

(a) record the costs of production,

(b) put spoiled goods into inventory, and

(c) record the cash sale of spoiled units.
2. Under the assumption that the loss due to spoilage will be charged to Job 100, use general journal entries to

(a) record the costs of production,

(b) put spoiled goods into inventory, and

(c) record the cash sale of spoiled units.

Transcribed Image Text:

Materials Labor... Factory overhead Total $35 15 20 $70