E$2-20$ Spoiled work

Roger Company manufactures tennis clothing. During the month, the company cut and assembled $8,000$ skirts. One hundred of the skirts did not meet specifications and were considered "seconds." Seconds are sold for $$9\mathrm{.}95$ per skirt, whereas first$-$quality skirts sell for $$39\mathrm{.}95.$ During the month, Work in Process was charged $$108,000$ : $$36,000$ for materials, $$48,000$ for labor, and $$24,000$ for factory overhead.

Record the entries to first charge production costs for the period and to then record the loss due to spoiled work, under each of the following conditions:

a$.$ The loss due to spoiled work is spread over all jobs in the department.

b$.$ The loss due to spoiled work is charged to the specific job because it is a special order.