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Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job
Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job #10 in August 2017. A total of 35 units were started, and 7 spoiled units were detected and rejected at final inspection, yielding 28 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,150 per unit. The current disposal price of the spoiled units is 5240 per unit. When the spoilage is detected, the spoiled goods are inventoried at $240 per unit. Read the requirements Red Requirements - X Sele tenth percent, X.X%.) 1. What is the normal spoilage rate? 2. Prepare the journal entries to record the normal spoilage, assuming the following a. The spoilage is related to a specific job. b. The spoilage is common to all jobs. c. The spoilage is considered to be abnormal spoilage
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