JOB ORDER COSTING AND NORMAL AND ABNORMAL SPOILAGE The Swordfish Shop is a manufacturer of ebikes. John Smith, the plant manager received the following information for JOB 1466. A total of 46 units were started, 6 units were spoiled and were detected at the end of the process which yeilded 40 good units. The spoiled units were considered normal spollage. Each unit was assigned a cost of $1,100 per unit. The current disposal price of the spoiled units is $235 per unit. When the spoilage is detected, the spoiled goods are inventoried at $235 per unit. 1 What is the normal spoilage rate? 2 Prepare the journal entry to record the normal spoilage, assuming that the spollage is specific to a job. A What is the debit in the entry to record the salvage value when the normal spollage is specific to a job? B What is the credit in the entry to record the normal spollage which is specific to a job? C. What is the amount in the entry to record the normal spoilage which is specific to a job? 3 Prepare the journal entry to record the normal spoilage, assuming that the spoilage is common to all the jobs. A What is the debit in the entry to record the salvage value of the normal spoilage which is common to all jobs? B What is the amount you would put in the debit above? C. What is the debit in the entry to record the costs that cannot be salvaged when the normal spoilage is common to all the iobs? D. What is the amount you would put in the debit above? E What is the credit in the entry to record the normal spollage which is common to all the jobs? F What is the amount you would put in the credit above? ASSUME THE SPOILAGE IS ABNORMAL 4 Prepare the journal entry to record the abnormal spoilage. A What is the debit in the entry to record the salvage value of the abnormal spoilage? B What is the amount you would put in the debit above? C What is the debit in the entry to record the costs that cannot be salvaged when the spoilage is abnormal? D What is the amount you would put in the credit above? E What is the credit in the entry to record the abnormal spoilage? F What is the amount you would put in the credit above? Choose... Choose... WORK-IN-PROCESS 1,410 MATERIALS CONTROL MANUFACTURING OVERHEAD CONTROL LOSS DUE TO ABNORMAL SPOILAGE 15% 6,600 5,190 Choosem