Springfield Sign Shop manufactures only specific orders. It uses a standard cost system. During one large order for the airport authority, an unusual number of signs were spoiled. The normal spoilage rate is 10% of units started. The point of first inspection is half way through the process, the second is three-fourths through the process, and the final inspection is at the end of the process. Other information about the job is as follows:

Signs started3,000

Signs spoiled450

Direct materials put into process at beginning$ 60,000

Conversion costs for job$120,000

Standard direct material costs per sign$27

Standard conversion cost per sign$54

Average point of spoilage is the 3/4 completion point

Average current disposal cost per spoiled sign$15

Required: Make necessary journal entries to record all spoilage