116. Spoiled Production. Faizan & Co. manufactures appliances to be sold to an Automobile industry. An order of 1,200 appliances was received at a sales price of Rs.200 per unit. The cost per unit was as follows: on completion of the order, it was found that 100 units were imperfect and spoiled and could repair and sell them under their own name. Faizan & Co. decided to sell 100 spoiled units to only be sold out at a price of Rs.48 per unit to a small manufacturing company which would this company at a price of Rs.48 each. Required: Prepare all necessary journal entries to record the following: finished goods Rs.97, Materials cost Labour cost Rs.32.00 Factory overhead cost Rs.42.00 Rs.22.00 (1) Putting the 1,200 units into process. (ii) Placing the spoiled units in the inventory. (iii) Completion and sale for cash 1,100"good units. (iv) Sale for cash of the 100 spoiled units. Use three work in process accounts and assume that: (a) Cost of spojlage is spread over entire production of the period. (b) Cost of spoilage is charged to the job on which it occurred. Check figures: (a) Cost of spoilage Rs.4,800, Cost of finished goods Rs.105,600 (6) Cost of finished goods Rs.110,400