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?

A)

Work in Process	$10,000
Work in Process Control	$10,000

B)

Loss from Abnormal Spoilage	$ 2,500
Work in Process	$ 2,500

C)

Loss from Abnormal Spoilage	$10,000
Work in Process	$10,000

D)

Loss from Abnormal Spoilage	$10,000
Work in Process Control	$10,000

E)

Work in Process Control	$ 2,500
Loss from Abnormal Spoilage	$ 2,500