Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals,...

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Accounting

Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently.
Read the requirements.
Requirement 1. Assume that a laborer dropped 420 cases. Suppose part of the 420 cases could be sold to a nearby prison for $420 cash. Prepare a journal entry to record this event. Calculate and explain briefly the unit cost of the remaining 1,680 cases.
Prepare a journal entry to record this event. (Abbreviations used: Mfg.= Manufacturing, Pay. = Payable. Record debits first, then credits. Exclude explanations from any journal entries.)
Journal Entry
\table[[Journal Entry],[Accounts,Debit,Credit],[Cash,,],[Loss from Abnormal Spoilage,,],[Work-in-Process Control,,]]
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