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Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per
Boss Cycle generally has spoiled goods during each job. Costs are assigned to normal spoilage at $10.00 per unit and abnormal spoilage at $20.00 per unit. Boss Cycle has a policy never to rework spoiled units. Management believes that once a unit is damaged it cannot be reworked into a quality product. QUESTION: What is the appropriate journal entry if 500 units are considered abnormal spoilage in a job costing system?
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