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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
4-36   Spoilage and Scrap (appendix) Lexan Textile Company’s Job X12 had one of its 20 units spoiled. The cost incurred on the unit was $600. It was specific normal spoilage with an estimated disposal price of $300 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of
$400 from the general production process failure and abnormal spoilage of $200. 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.
1.   Make the necessary journal entries to record normal and abnormal spoilage costs.
2.   Make the necessary journal entries to record both types of scrap sold.
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