Lexan Textile Companys Job X12 had one of its 45 units spoiled. The cost incurred on the unit was $730. It was specific normal spoilage with an estimated disposal price of $560 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $660 from the general production process failure and abnormal spoilage of $130. The company also incurred scrap due to Job Y34 and sold it for $95. It also sold the scrap common to all jobs for $135 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.