1. Sokolov Office Decor produces commercial office furnishing for educational institutions, hospitals, and offices. The company uses a job costing system to record its costs. A recent order for 2,500 sections of wall units had the following costs per unit:

Direct materials $300

Direct labour $200

Manufacturing overhead allocated $100

$600

1. Refer to the original data. Inspectors at the company rejected 200 of the 2,500 wall units due to dents and scratches. The wall units were sold to a local contractor at a discount for $40,000. The contractor used the units to furnish a building. Assume this rejection rate is considered normal.
   1. Prepare the journal entry and calculate the unit cost if the rejection is attributable to this particular job. Cost per unit - $634.78

Prepare the journal entry and calculate the unit cost if the rejection is common to all jobs.