1. Juicy-Bits Orange Co. (Juicy-Bits) produces orange juice products using a job cost system. The peel of the orange is considered to be scrap that is related to all of Juicy-Bits jobs. Juicy-Bits has a sales contract with a local soap company that picks up the scrap peel at the end of every day. The soap company uses the oil from the peel to make soap. At the end of day on June 20, Juicy-Bits production manager recorded Work in process costs to two jobs (Job 214 and Job 215). Juice-Bits warehouse manager loaded the daily amount of scrap orange peels onto the soap companys delivery trailer and wrote up an invoice for $475. Juicy-Bits accountant considers the sales amount to be significant.

Required: Prepare the journal entry to record the sale of scrap on June 20. (3 marks)

b) Identify two performance measures that could be used together to reward managers in such a way that the company remains profitable in both the short term and in the long term. Explain how each measure would achieve its objective. (4 marks)