Fossen Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,000 cases of mixed vegetables costs $7 per case: direct materials, $4; direct manufacturing labor, $2; and manufacturing overhead allocated, $1. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. Read the requirements. Requirement 1. Assume that a laborer dropped 400 cases. Suppose part of the 400 cases could be sold to a nearby prison for $400 cash. Prepare a journal entry to record this event. Calculate and explain briefly the unit cost of the remaining 1,600 cases. Prepare a journal entry to record this event. (Abbreviations used: Mfg. = Manufacturing, Pay. = Payable. Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Debit Credit