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Awesome Sauce Manufacturing produces a unique product. Recently, 5 units out of a job of 50 units were spoiled; the spoiled units are extremely abnormal
Awesome Sauce Manufacturing produces a unique product. Recently, 5 units out of a job of 50 units were spoiled; the spoiled units are extremely abnormal because Awesome Sauce never makes a mistake. The total cost of each unit prior to the inspection point is $2,000. When the spoilage is detected, the spoiled goods are inventoriable at $600 per part, the net disposal value. What is the correct journal entry to record the abnormal spoilage? ODR: Materials Control, $3,000 DR: Loss from Abnormal Spoilage, $7,000 CR: Work-in-process, $10,000 DR: Materials Control, $3,000 CR: Work-in-process, $3,000 ODR: Materials Control, $3,000 DR: Manufacturing Overhead, $7,000 CR: Work-in-process, $10,000 O DR: Loss from Abnormal Spoilage, $3,000 CR: Work-in-process, $3,000
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