Spoiled work LO₄ Tiger Inc. manufactures golf clothing. During the month, the company cut and assembled 8,000 sweaters. One hundred of the sweaters did not meet specifications and were considered "seconds." Seconds are sold for $9.95 per sweater, whereas first-quality sweaters sell for $39.95. During the month, Work in Process was charged $108,000: $36,000 for materials, $48,000 for labor, and $24,000 for factory overhead.

Record the entries to charge production costs for the period and the loss due to spoiled work, under each of the following conditions:

a. The loss due to spoiled work is spread over all jobs in the department.

b. The loss due to spoiled work is charged to this job because it is a special order.