Whitefish Machine Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Whitefish Machine, obtains the following information for Job #22 in August 2020. A total of 40 units were started, and 8 spoiled units were detected and rejected at final inspection, yielding 32 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,450 per unit. Assume that Job #22 of Whitefish Machine Shop generates scrap with a total sales value of $900 (it is assumed that scrap returned to the storeroom is sold quickly).

Prepare the journal entries for the recognition of scrap, assuming the following: (Record debvis first, then credits. Exclude explanations from any journal entries.) a. The value of scrap is immaterial and scrap is recognized at the time of sale. b. The value of scrap is material, is related to a specific job, and is recognized at the fime of sale. c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap. Now prepare the journal entry for the sale of the scrap