The Peric Manufacturing Shop produces motorcycle parts. Typically, 18 pieces out of a job lot of 800 parts are spoiled. Costs are assigned at the inspection point, $42.00 per unit. Spoiled pieces may be disposed at $26.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 2,400 good parts.

Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101?

Select one:

a.

Materials Control 1,404

Work-in-Process Control 1,404

b.

Work-in-Process Control 1,404

Materials Control 1,404

c.

Work-in-Process Control 468

Materials Control 468

d.

Materials Control 468

Work-in-Process Control 468