Tyler Metal Fabricators accumulates fairly large quantities of metal shavings and trimmings from the products it manufactures. At least once a month, the scrap metal is sold to a local smelter for reprocessing. This month's scrap sales on account total $1,650.
Required:
Give the general journal entry to record the sale of the scrap for each of the following alternatives:
(1) The scrap sales are viewed as additional revenue.
(2) The scrap sales are viewed as a reduction of the cost of goods sold.
(3) The scrap sales are viewed as a reduction of factory overhead.
(4) The scrap sales are traceable to individual jobs and are viewed as a reduction in the cost of materials used on the jobs.