Mizar manufacturing Inc. manufactures several designs of outdoor furniture. Production cost are accounted for using a job order cost system. During the current period, 5000 metal tables were to be manufactured for job 275. Cost charged to the job before inspection are

Materials12,000

Labor (1500 x $10 per hour)15,000

Factory overhead ($20per labor hour)30,000

Before the transfer to the finished goods, Inspection revealed that 500 tables were spoiled and cannot be reworked upon. These spoiled units can be however be salvaged at 10$ each.

REQUIRED:

I.calculate the total cost of the job

II.prepare journal entries to record the spoilage

III.record the transfer of completed tables to finished goods inventory