The Peric Manufacturing Shop Produces Motorcycle Parts

question 12

Multiple Choice

The Peric Manufacturing Shop produces motorcycle parts. Typically, 22 pieces out of a job lot of 1800 parts are spoiled. Spoilage is considered a normal part of Peric's production process. Costs are assigned at the inspection point, $52.00 per unit. Spoiled pieces may be disposed at $16.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3600 good parts.
Which of the following journal entries properly reflects the recording of spoiled goods?

---

Definitions:

Financial Year

A period used for calculating annual financial statements in businesses and other organizations, often stretching over a 12-month period but not necessarily aligning with the calendar year.

Chapter 13 Provisions

Regulations under Chapter 13 of the U.S. Bankruptcy Code allowing individuals with a regular income to create a plan to repay all or part of their debts.

Self-Employed People

Individuals who work for themselves, either by owning their own business or working as independent contractors, rather than being employed by others.

Corporations

Legal entities recognized by law that are distinct from their owners, with the ability to own assets, incur liabilities, and enter into contracts.