Prepare necessary journal entries to record normal spoilage

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Lexan Textile Company's Job X12 had one of its 30 units spoiled. The cost incurred on the unit was $700. It was specific normal spoilage with an estimated disposal price of $500 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $600 from the general production process failure and abnormal spoilage of $100. The company also incurred scrap due to Job Y34 and sold it for $80. It also sold the scrap common to all jobs for $120 cash in May.

Required:

Question 1. Prepare the necessary journal entries to record normal and abnormal spoilage costs.

Question 2. Prepare the necessary journal entries to record both types of scrap sold.

Reference no: EM132517642

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