Paradise Bay Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay, obtains the following information for Job # 22 in August 2020. A total of 23 units were started, and 3 units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,300 per unit. Assur Job # 22 of Paradise Bay Shop generates scrap with a total sales value of $400 (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 a. The value of scrap is immaterial and scrap is recognized at the time of sale. Journal Entry Accounts. Cash or Accounts Receivable Scrap Revenues Debit 400 Credit 400 b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. Journal Entry Requirements Prepare journal entries for the recognition of scrap, assuming the following: The value of scrap is immaterial and scrap is recognized at the time of sale. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. a. b. c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Print Done X
Paradise Bay Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay, obtains the following information for Job # 22 in August 2020. A total of 23 units were started, and 3 units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,300 per unit. Assur Job # 22 of Paradise Bay Shop generates scrap with a total sales value of $400 (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 a. The value of scrap is immaterial and scrap is recognized at the time of sale. Journal Entry Accounts. Cash or Accounts Receivable Scrap Revenues Debit 400 Credit 400 b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. Journal Entry Requirements Prepare journal entries for the recognition of scrap, assuming the following: The value of scrap is immaterial and scrap is recognized at the time of sale. The value of scrap is material, is related to a specific job, and is recognized at the time of sale. a. b. c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale. d. The value of scrap is material, is recognized as inventory at the time of production, and is recorded at its net realizable value. Print Done X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I need requirement B-D please.
Transcribed Image Text:Paradise Bay Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of Paradise Bay, obtains the following information for Job #22 in August 2020. A total of 23 units were started, and 3
units were detected and rejected at final inspection, yielding 20 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,300 per unit. Assun
Job # 22 of Paradise Bay Shop generates scrap with a total sales value of $400 (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
a. The value of scrap is immaterial and scrap is recognized at the time of sale.
Journal Entry
Accounts
Cash or Accounts Receivable
Scrap Revenues
Debit
Accounts
400
Credit
b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale.
Journal Entry
Debit
400
Credit
Requirements
Prepare journal entries for the recognition of scrap, assuming the following:
a. The value of scrap is immaterial and scrap is recognized at the time of sale.
b. The value of scrap is material, is related to a specific job, and is recognized at
the time of sale.
The value of scrap is material, is common to all jobs, and is recognized at the
time of sale.
C.
d. The value of scrap is material, is recognized as inventory at the time
of production, and is recorded at its net realizable value.
Print
Done
X
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