Rowe Co.'s Job 401 for the manufacture of 2,200 wagons was completed during August at the unit

costs presented below. Final inspection of Job 401 disclosed 200 wagons that were sold to a jobber for

$6,000.

Direct materials $24

Direct labor 18

Factory overhead 14

$56

Assume that the spoilage loss is charged to all production during August. What is the journal entry to record

the spoilage?

A.

Spoiled Goods Inventory 11,200

Factory Overhead 11,200

B.

Factory Overhead 11,200

Work in Process 11,200

C.

Spoiled Goods Inventory 6,000

Factory Overhead 5,200

Work in Process 11,200

D.

Spoiled Goods Inventory 6,000

Work in Process 6,000