As production manager, Michael noticed that several recent production runs generated a decent sized collection of scrap pieces in the designated scrap bin. He looks at current prices for this scrap and recognizes the market prices is relatively high for this material right now, so he makes plans to sell it. He estimates that there are 52 pounds of scrap available to be sold. The current sales price is $9 per pound for this particular scrap material. (A) Assume Michael uses the sales method to account for scrap. Record the journal entry for the sale of all the scrap for cash. Account Titles and Explanation Debit Credit Cash 468 sales 468 (b) Assume Michael uses the production method to account for scrap. Record the journal entry for the sale of all the scrap for cash. Account Titles and Explanation Debit Credit cash 468 WIP Inventory 468 ( c ) Assume Michael uses the production method to account for scrap. Further, Michael finds several pieces of scrap that can be used in other projects. He estimates the reusable scrap quantity to be 15 pounds; the remaining scrap will be sold as is. 1. Record the journal entry (entries) to recognize the

Answer rating: 100% (QA)

a Journal entry for the sale of all scrap for cash using the ... View the full answer