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?

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Definitions:

House's Path-Goal

A leadership theory that suggests leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to their goals, taking into account the work environment and the characteristics of the employees.

Worker Self-Confidence

The belief employees have in their own abilities to carry out tasks and achieve goals.

Substitutes for Leadership

Factors or conditions that make the direct leadership less necessary or irrelevant, such as highly routine jobs or comprehensive work processes.

Work Setting

The surroundings, both social and physical, where individuals carry out their work.