Lexan Textile Company's Job X12 had one of its 35 units spoiled. The cost incurred on the unit was $780. It was specific normal spoilage with an estimated disposal price of $660 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $760 from the general production process failure and abnormal spoilage of $180. The company also incurred scrap due to Job Y34 and sold it for $120. It also sold the scrap common to all jobs for $160 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.