Tee Time Machine Shop is a manufacturer of motorized carts for vacation resorts. Pat Cruz, the plant manager of Tee Time, obtains the following information for Job #10 in August 2018. A total of 45 units were started, and 5 spoiled units were detected and rejected at final inspection, yielding 40 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,000 per unit. The current disposal price of the spoiled units is $200 per unit. When the spoilage is detected, the spoiled goods are inventoried at $200 per unit

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Requirement 1. What is the normal spoilage rate? Select the formula, and then calculate the normal spoilage rate. (Round the percentage to one decimal place, X.X%.) = ) x 100% ) x 100% Normal spoilage rate % Requirement 2. Prepare the journal entries to record the normal spoilage. a. Prepare the journal entry to record the normal spoilage, assuming the spoilage is related to a specific job. (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Debit Credit b. Prepare the journal entry to record the normal spoilage, assuming the spoilage is common to all jobs. Journal Entry Accounts Debit Credit c. Prepare the journal entry to record the normal spoilage, assuming the spoilage is considered to be abnormal spoilage. Journal Entry Accounts Debit Credit