Lexan Textile Companys Job X12 had one of its 20 units spoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimated disposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $400 from the general production process failure and abnormal spoilage of $200. The company also incurred scrap due to Job Y34 and sold it for $80. It also sold the scrap common to all jobs for $120 cash in May.

Required:

1. Prepare the necessary journal entries to record normal and abnormal spoilage costs.

2. Prepare the necessary journal entries to record both types of scrap sold.

List of accounts available:

No journal entry required accounts receivable accrued payroll accumulated depreciation cash cogs factory overhead finished goods inv loss from abnormal spoilage prepaid insurance sales spoiled materials inv work in progress inv job x12 work in progress inv: job y34

pat b

Journal entry worksheet Record the normal spoilage attributable to Job X12. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the normal and abnormal spoilages incurred in Job Y34. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet