Burlington Textiles has some spoiled goods that had an assigned cost of $40,000 and zero net disposal value.

Prepare a journal entry for each of the following conditions under (a) process costing (department A) and (b) job costing:

1. Abnormal spoilage of $40,000

2. Normal spoilage of $40,000 regarded as common to all operations

3. Normal spoilage of $40,000 regarded as attributable to specifications of a particular job

Answer rating: 100% (QA)

SITUATION PROCESS COSTING JOB COSTING 1 LOSS FROM NORMAL SPO... View the full answer