Spoilage and job costing.

Your company makes products using a job costing system. A specific order for 2,100 cases of product costs $9 per case: DM $4; DL $3; and MOH $2. The MOH rate includes a provision for normal spoilage.

Consider each requirement independently.

Required:

Inspectors at the company reject 420 of the 2,100 cases. The 420 cases are disposed of immediately for $840.

Assume that this rejection rate is considered normal and related to the exacting specifications for the job. Prepare a journal entry to record this event.

Assume that this rejection rate is considered normal and related to the nature of the manufacturing process. Prepare a journal entry to record this event.

Assume that this rejection rate is considered abnormal. Prepare a journal entry to record this event.

Inspectors at the company reject 420 cases of the 2,100 cases. The 420 cases can be modified at if additional resources are used: $30 for materials, $110 for labor, and $70 for overhead. The modified product could be sold as first quality.

Assume that this rejection rate is considered normal and related to the exacting specifications for the job. Prepare a journal entry to record this event.

Assume that this rejection rate is considered normal and related to the nature of the manufacturing process. Prepare a journal entry to record this event.

Assume that this rejection rate is considered abnormal. Prepare a journal entry to record this event.