Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of...

    

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Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following information for Job # 22 in August 2020. A total of 33 units were started, and 8 spoiled units were detected and rejected at final inspection, yielding 25 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,000 per unit. Assume that Job #22 of Paradise Bay Cart Shop generates scrap with a total sales value of $450 (it is assumed that scrap returned to the storeroom is sold quickly). Read the requirements. Prepare the journal entries for the recognition of scrap, assuming the following: (Record debits first, then credits. Exclude explanations from any journal entries.) a. The value of scrap is immaterial and scrap is recognized at the time of sale. Journal Entry Accounts Accounts Debit b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. Journal Entry Accounts Debit Credit c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Debit Credit Credit Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Accounts Accounts d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap. Journal Entry Now prepare the journal entry for the sale of the scrap. Journal Entry Debit Accounts: Debit Credit Debit Credit Credit Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Accounts Accounts d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap. Journal Entry Now prepare the journal entry for the sale of the scrap. Journal Entry Debit Accounts: Debit Credit Debit Credit Credit The value of scrap is material, is recognized as inventory at the time of production, and is re epare the journal entry to record the recognition of scrap. Journal Entry Accounts Cash or Accounts Receivable w prepa Manufacturing Overhead Control Materials Control Scrap Revenues Work-in-Process Control (Job #22) Debit Debit Credit Credit Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following information for Job # 22 in August 2020. A total of 33 units were started, and 8 spoiled units were detected and rejected at final inspection, yielding 25 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,000 per unit. Assume that Job #22 of Paradise Bay Cart Shop generates scrap with a total sales value of $450 (it is assumed that scrap returned to the storeroom is sold quickly). Read the requirements. Prepare the journal entries for the recognition of scrap, assuming the following: (Record debits first, then credits. Exclude explanations from any journal entries.) a. The value of scrap is immaterial and scrap is recognized at the time of sale. Journal Entry Accounts Accounts Debit b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. Journal Entry Accounts Debit Credit c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Debit Credit Credit Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Accounts Accounts d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap. Journal Entry Now prepare the journal entry for the sale of the scrap. Journal Entry Debit Accounts: Debit Credit Debit Credit Credit Paradise Bay Cart Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay Cart, obtains the following c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. Journal Entry Accounts Accounts d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Prepare the journal entry to record the recognition of scrap. Journal Entry Now prepare the journal entry for the sale of the scrap. Journal Entry Debit Accounts: Debit Credit Debit Credit Credit The value of scrap is material, is recognized as inventory at the time of production, and is re epare the journal entry to record the recognition of scrap. Journal Entry Accounts Cash or Accounts Receivable w prepa Manufacturing Overhead Control Materials Control Scrap Revenues Work-in-Process Control (Job #22) Debit Debit Credit Credit

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