19-32 Spoilage and job costing. (L. Bamber) Satiated Ninja produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 to-go boxes of uramaki costs 9 per case: direct materials, 4; direct manufacturing labor, 3; and manufactur- ing overhead allocated, 2. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. 1. Assume that a laborer dropped 420 to-go boxes. Suppose part of the 420 to-go boxes could be sold to a nearby prison for 420 cash. Prepare a journal entry to record this event. Calculate and explain briefly the unit cost of the remaining 1,680 to-go boxes. 2. Refer to the original data. Tasters at the company reject 420 of the 2,100 to-go boxes. The 420 to-go boxes are disposed of for 840. Assume that this rejection rate is considered normal. Prepare a journal entry to record this event, and do the following: a. Calculate the unit cost if the rejection is attributable to exacting specifications of this particular job. b. Calculate the unit cost if the rejection is characteristic of the production process and is not attribut- able to this specific job. c. Are unit costs the same in requirements 2a and 2b? Explain your reasoning briefly. 3. Refer to the original data. Tasters rejected 420 to-go boxes that had insufficient salt. The product can be placed in a vat, salt can be added, and the product can be reprocessed into jars. This operation, which is considered normal, will cost 420. Prepare a journal entry to record this event and do the following: a. Calculate the unit cost of all the to-go boxes if this additional cost was incurred because of the exacting specifications of this particular job. b. Calculate the unit cost of all the to-go boxes if this additional cost occurs regularly because of dif- ficulty in seasoning. c. Are unit costs the same in requirements 3a and 3b? Explain your reasoning briefly