Lexan Textile Company S Job X12 Had One Of Its 35 Units Spoiled The Cost Incurre
Lexan Textile Company’s Job X12 had one of its 35 units spoiled. The cost incurred on the unit was $780. It was specific normal spoilage with an estimated disposal price of $660 for the spoiled unit. Job Y34 had common normal spoilage with the estimated cost of $760 from the general production process failure and abnormal spoilage of $180. The company also incurred scrap due to Job Y34 and sold it for $120. It also sold the scrap common to all jobs for $160 cash in May.
1. Prepare the necessary journal entries to record normal and abnormal spoilage costs.
2. Prepare the necessary journal entries to record both types of scrap sold.