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cost accounting help!!! Whitefish Machine Shop is a manulacturer of golf carts. Peter Cranston, the plant manager of Whitef sh Meachine, obtains the following information
cost accounting help!!!
Whitefish Machine Shop is a manulacturer of golf carts. Peter Cranston, the plant manager of Whitef sh Meachine, obtains the following information for Job iz22 in August 2020 . A total of 32 unins were started, and 7 spoled units were detected and rejected at final inspection. yielding 25 good units. The spolled units were considered to be normal spodage. Costs assigned prior to the inspection point are $1.250 per unit. Assume that Job \# 22 of Whitefish Machine Shop generates scrap with a total sales value of $200 (if is assurned that scrap returned to the storeroom is sold quickly) Prepare the journal entries for the recognition of scrap, assuming the following (Record debits firt, then credibs Exclude explanations froeti any fournal entiles.) a. The value of scrap is immaterial and scrap is recognized at the time of sale b. I he value of scrap is material, is related to a specitic job, and is recognized at the time of sale c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap. Now prepare the journal entry for the sale of the scrap Step by Step Solution
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