ber Cee:y Journal Entries for Scrap in Job-Order Costing The SLU Metal Fabricators, Inc. accumulates fairly large quantities of metal shavings and trimmings from the products it manufactures. At least once a month, the scrap metal is sold to a local producer for further processing. This month's scrap sales on account total P2,500. Required: Give the appropriate journal entry to record the sale of the scrap for each of the following alternatives. 1. The scrap sales are viewed as additional revenue. 2. The scrap sales are viewed as a reduction of the cost of goods sold during the month. 3. The scrap sales are viewed as a reduction of manufacturing overhead control. 4. The scrap sales are traceable to individual jobs and are viewed as a reduction in the cost of materials used on the jobs.Spoilage Cost in a Job-Order Cost System due to Internal Failure best Blue Girl Plastico Company uses a job-order cost system to account f, its production costs. During the current period, 2,000 plastic tables \e," molded and assembled on Job Number 2089. The total cost incurred 5- the job is: ee Materials P24,000 Labor (1,000 hours x P10 per hour) 10,000 ‘Manufacturing overhead (P20 per labor hour) 20.000 ‘Total cost charged toJob Number 2089 009 Before being transferred to Finished Goods Inventory, the plastic tables were inspected and 100 were found to be spoiled. The spoiled plastic tables cannot be reworked because the defects are embedded in the plastics; however, they can be sold at P10 each. The company maintains a separate Spoiled Goods Inventory account for defective products and charges the unrecoverable cost of spoilage to Factory Overhead Control Required: 1. Give the appropriate journal entries to record the total cost of Job Number 2089, the spoilage cost and the transfer of goods to an inventory account. 2. Determine the unit cost for each plastic table. SEE Spoilage Cost in a Job-Order Cost System due to Customer Change Order Smiling GG Metal Works produces a custom sheet metal products ranging from cabinets and storage containers to portable buildings and custom trailers. During the current period, an order for 1,000 custom storage | containers was begun on Job Number 3229 for BG Repair Shops. After | 200 units had been completed, the customer decided to change the desig® - specifications for the containers. The design change was successfully implemented on the 800 units that were not complete at the date of the change order; however, the 200 completed units could not be reworked meet the customer's new design requirements, As a consequence, additional 200 units had to be manufactured (bringing the total number to 1,200, 1,000 that met the customers specifications and 200 that 4 ' not.) The customer does not want the 200 units that do not meet . specifications; however, management of GG Metal Works believes Si, the spoiled units can be sold in the market at P100 each. Spoiled 2% are kept in an inventory account that is separate from Finished G0Problem 9-4 ~ Continued Total costs charged to Job Number 3229 for BG Repair Shops are: Materials P100,000 Labor (2,400 hours x P16 per hour) 36,000 Manufacturing overhead (P30 per labor hour) 72,000 Total costs charged to Job Number 3229 P208,000 Required: . 1. Give the appropriate journal entries to record the total cost of Job Number 3229. 2. Determine the unit cost for each container.Rework Cost in Job-Order Costing Due to Internal Failure ‘TGIL Furniture Shop manufactures several different designs of custom made tables. Production costs are accounted for using @ job order cost system. During the current period, 200 tables are manufactured on Job Number 3546. Costs charged to the job before inspection: ———— Materials P7,000 Labor (300 hours x P10 per hour) 3,000 On inspection, it was discovered that an umbrella ring had not been attached to the tables. To correct the oversigh, a small part was welded fo the table, leg brace was repainted. The small part cost P.50 for each table, and the primer cost P1.00 for each table. Each table required fifteen minutes of time. Required: 1. Prepare journal entries to record the total costs of Job Number 3546, the rework costs and the transfer of goods to an inventory account. 2. Determine the unit cost for each table manufactured. Ser ese Rework Cost in Job-Order Costing Due to Customer Change Order Deeco Electronics, Inc. manufactures parts for televisions. During the current year, an order for 2,000 parts was begun for the LUI Retailers. ‘The costs incurred on the job are: Materials PHO Labor (2,000 hours x P16 per hour) min ‘Manufacturing overhead (P30 per direct labor hours) 60,000 Before taking the delivery of television parts LUI Retail desig, specifications fr the gauge, The change required tho replacement part e raplacsment part poe Pl and required 10 minute soft Tnstallation in each part. The change in specificati parts manufactured on the job. cea ee on Required: 1. Prepare journal entries to record the total costs of job for LUI Retailers, the rework costs and Retailers, the row the transfer of goods to an 2. Determine the unit cost for each part manufactured.