1.

What is the normal spoilage rate?

2.

Prepare the journal entries to record the normal spoilage, assuming the following:

a.	The spoilage is related to a specific job.
b.	The spoilage is common to all jobs.
c.	The spoilage is considered to be abnormal spoilage.

a. The spoilage is related to a specific job. Paradise Bay Cart Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Paradise Bay, obtains the following information for Job \#10 in August. A total of 30 units were started, and 6 spoiled units were detected and rejected at final inspection, yielding 24 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,150 per unit. The current disposal price of the spoiled units is $200 per unit. Whe the spoilage is detected, the spoiled goods are inventoried at $200 per unit. Required Requirement 1. What is the normal spoilage rate? Select the formula, and then calculate the normal spoilage rate. (Round the percentage to the nearest tenth percent, X.X\%.) Requirement 2. Prepare the journal entries to record the normal spoilage, assuming the following: a. The spoilage is related to a specific job. b. The spoilage is common to all jobs. c. The spoilage is considered to be abnormal spoilage. (Record debits first, then credits. Exclude explanations from any journal entries. Leave unused cells blank.) b. The spoilage is common to all jobs. c. The spoilage is considered to be abnormal spoilage