Wellgoes Company put 1,331 units into production for Job No. 3. Spoilage costs were $40 per unit. Only 1,300 good units are produced and the rest are spoiled, with a salvage value of $6 each.

Spoilage of 20 units was anticipated. jju8 Required:

Write the journal entries necessary to record the above information assuming that the normal spoilage costs were a Allocated to all jobs (included in the factory overhead application rate)

b Allocated to specific jobs (not included in the factory overhead application rate)