Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paradise Bay Cart Shop is a manufacturer of golf carts, Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following information for Job

image text in transcribed
image text in transcribed
image text in transcribed
Paradise Bay Cart Shop is a manufacturer of golf carts, Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following information for Job #22 in August 2020. A total of 33 units were started, and 8 spoiled units were detected and rejected at final inspection, yielding 25 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,000 per unit. Assume that Job #22 of Paradise Bay Cart Shop generates scrap with a total sales value of $450 (it is assumed that scrap retumed to the storeroom is sold quickly). Read the requirements Prepare the journal entries for the recognition of scrap, assuming the following: (Record debits first, then credits. Exclude explanations from any journal entries.) a. The value of scrap is immaterial and scrap is recognized at the time of sale. Journal Entry Accounts Debit Credit b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. Journal Entry Accounts Debit Credit c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Accounts Debit Credit Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Accounts Debit Credit d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap Journal Entry Accounts Debit Credit Now prepare the journal entry for the sale of the scrap. Journal Entry Accounts Debit Credit The value of scrap is material, is recognized as inventory at the time of production, and is re epare the journal entry to record the recognition of scrap. Journal Entry Accounts Debit Credit Cash or Accounts Receivable w prepa Manufacturing Overhead Control Materials Control Debit Credit Scrap Revenues Work-in-Process Control (Job #22)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide Working Papers For College Accounting, Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

23rd Edition

0357474740, 9780357474747

More Books

Students also viewed these Accounting questions

Question

What is the unions role in the disciplinary process?

Answered: 1 week ago