Requirement $1.$ Prepare journal entries to record the accounting for the cost of the spoiled chips and for rework. $($Record debits first, then credits. Explanations are not required. Leave unused cells blank.

Round amounts to the nearest whole dollar.$)$

Begin by journalizing the costs assigned to the spoiled units before considering the rework costs.

Additional Information

In August, QS manufactured $1,800$ CS$1$ chips and $1,400$ CS$2$ chips; $90$ of the CS$1$

chips and none of the CS$2$ chips required rework. QS classifies $80$ of the CS$1$

chips reworked as normal rework caused by inherent problems in its production

process that coincidentally occurred only during the production of CS$1.$ Hence, the

rework costs for these $80$ CS$1$ chips are normal rework costs not specifically

attributable to the CS$1$ product. QS classifies the remaining $10$ units of CS$1$ chips

reworked as abnormal rework. QS allocates manufacturing overhead on the basis

of machine$-$hours required to manufacture CS$1$ and CS$2.$ Each CS$1$ and CS$2$ chip

requires the same number of machine$-$hours.