Recognition of loss from spoilage. Spheres Toys manufactures globes at its San Fernando facility. The company provides you with the following information regarding operations for April 2017: Total globes manufactured 20,000 Globes rejected as spoiled units 750 Total manufacturing cost $800,000 Assume the spoiled units have no disposal value. Q. IIf the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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 Recognition of loss from spoilage. Spheres Toys manufactures globes at its San Fernando facility. The company provides you with the following information regarding operations for April 2017:


Total globes manufactured 20,000

Globes rejected as spoiled units 750

Total manufacturing cost $800,000


Assume the spoiled units have no disposal value.

Q. IIf the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred.

 

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