Lexan Textile Company's Job X12 had one of its 30 units spoiled. The cost incurred on the unit was $700. It was specific normal spoilage with an estimated disposal price of $500 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $600 from the general production process failure and abnormal spoilage of $100. 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.

a) Record the normal spoilage attributable to Job X12.

b) Record the normal and abnormal spoilages incurred in Job Y34.

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

a) Record the scrap sold attributable to a specific job.

b) Record the scrap sold common to all jobs.