3. Fanfan Company has a job-costing facility that manufactures carbon fiber bike frames. For Job 1836, 6 spoiled units were detected and could be reworked at a cost of $2,600. A total cost of $8,000 associated with these units has already been assigned to the Job before the rework. In addition, Job 1836 generates normal scrap with a total value of $820 (it is assumed that the scrap returned to the storeroom is sold quickly).

Required: Prepare the journal entries, assuming the following: 1. The rework is related to a specific job. 2. The rework is common to all jobs. 3. The value of scrap is immaterial, and scrap is recognized at the time of sale. 4. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. 5. The value of scrap is material, is common to all jobs, and scrap is recognized as inventory at the time of production and is recorded at its net realizable value. Prepare journal entries for (1)Scrap returned to storeroom; (2)Sale of scrap