11. Accounting for spoiled work. Quitman Company had a production run of 4,000 pairs jeans during the last week of June, with these unit costs: of $ 5.00 4.00 Direct materials Direct labor Factory overhead (includes a $.50 allowance for spoiled work) 3.50 $12.50 Final inspection revealed that 300 pairs, a normal number, did not meet quality stan- dards, but can be sold as seconds at a price of $6 a pair. Required: Prepare journal entries for all of the described transactions if: (1) The loss is charged to all production. (2) The loss is due to exacting specifications and charged to the production run