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 properly reflects the recording of spoiled goods?
a. Materials Control $ 200
Manufacturing Overhead Control $ 800
Work-in-Process Control $1,000
b. Materials Control $ 250
Manufacturing Overhead Control $1,000
Work-in-Process Control $1,250
c. Work-in-Process Control $1,250
Materials Control $ 250
Manufacturing Overhead Control $1,000
d. Manufacturing Overhead Control $1,000
Materials Control $ 200
Work-in-Process Control $ 800
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