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Totally Tubular Technologies produces motorcycle parts in a job-order costing environment. Typically, 22 pieces out...

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Accounting

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Totally Tubular Technologies produces motorcycle parts in a job-order costing environment. Typically, 22 pieces out of a job lot of 1800 parts are spoiled. Spoilage is considered a normal part of the company's production process. Costs are assigned at the inspection point, $52.00 per unit. Spoiled pieces may be disposed at $16.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. A current job, MP55, requires the production of 3600 good parts. Required: A. Prepare the journal entry to properly record the spoiled goods on job MP55, assuming the spoilage is common to all jobs. Be sure to label debit entries with "DR" and credit entries with "CR." B. Prepare the journal entry to properly record the spoiled goods on job MP55, assuming the spoilage is unique to the job. C. Now, assume that all spoilage is abnormal. Prepare the journal entry to record the spoiled goods on job MP55. D. Calculate the unit cost of the remaining good units under requirements A, B, and C

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