Multiple Choice
The Harleysville Manufacturing Shop produces motorcycle parts. Typically, 10 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $50.00 per unit. Spoiled pieces may be disposed of at $10.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 2,500 good parts.
Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101?
a. Work-in-Process Control $100
Materials Control $100
b. Materials Control $100
Work-in-Process Control $100
c. Materials Control $250
Work-in-Process Control $250
d. Work-in-Process Control $250
Materials Control $250
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