Ch18 MC Questions.doc

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Department
Commerce
Course Code
COMMERCE 2AB3
Professor
Aadil Merali Juma

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CHAPTER 18 SPOILAGE, REWORK, AND SCRAP TRUE/FALSE 1. Reducing defects helps to reduce costs, but it does not make the business more competitive. Answer: False Difficulty: 2 Objective: 1 Terms to Learn: spoilage Reducing defects makes the business more competitive. 2. Reworked goods are unacceptable units of production usually not capable of being repaired or converted into a salable product. Answer: False Difficulty: 2 Objective: 1 Terms to Learn: rework Reworked goods are unacceptable units of production that can be repaired into a salable product. 3. The value of scrap material can have either a high or low sales value relative to the product with which it is associated. Answer: False Difficulty: 2 Objective: 1 Terms to Learn: scrap Scrap material by definition has a low sales value. 4. Scrap and rework are considered to be the same thing by managerial accountants. Answer: False Difficulty: 2 Objective: 1 Terms to Learn: scrap, rework Scrap and rework are not considered to be the same thing by managerial accountants. 5. Normal spoilage adds to the cost of the job to which it is attributed in a job order costing system. Answer: True Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage 18-1 6. When calculating normal spoilage rates, the base should be the actual units started in production. Answer: False Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage The base should be good units completed. 7. Abnormal spoilage is spoilage that should arise under efficient operating conditions. Answer: False Difficulty: 2 Objective: 2 Terms to Learn: abnormal spoilage Abnormal spoilage should not arise under efficient operating conditions. 8. A company whose goal is zero defects would usually treat all spoilage as abnormal. Answer: True Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage, abnormal spoilage 9. Spoilage can be considered either normal or abnormal. Answer: True Difficulty: 2 Objective: 2 Terms to Learn: spoilage 10. Normal spoilage is spoilage that is not considered to be inherent in a production process. Answer: False Difficulty: 1 Objective: 2 Terms to Learn: normal spoilage Normal spoilage is spoilage that is considered to be inherent in a production process. 11. When determining the normal spoilage rate, it is calculated based on the number of good units competed, rather than using the number of units started. Answer: True Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage 12. A company might consider all spoilage to be abnormal if it wants to pay serious attention to the problem. Answer: True Difficulty: 2 Objective: 2 Terms to Learn: abnormal spoilage 18-2 13. Counting spoiled units as part of output units in a process-costing system usually results in a higher cost per unit. Answer: False Difficulty: 3 Objective: 3 Terms to Learn: spoilage Counting spoiled units usually results in a lower cost per unit. 14. Costs in beginning inventory are pooled with costs in the current period when determining the costs of good units under the weighted-average method of process costing. Answer: True Difficulty: 2 Objective: 3 Terms to Learn: weighted-average method 15. Under the weighted-average method, the costs of normal spoilage are added to the costs of their related good units. Hence, the cost per good unit completed and transferred out equals the total costs transferred out divided by the number of good units produced. Answer: True Difficulty: 3 Objective: 3 Terms to Learn: weighted-average method, normal spoilage 16. The stage of the production cycle where products are examined to determine if they are acceptable is called the inspection point. Answer: True Difficulty: 2 Objective: 3 Terms to Learn: inspection point 17. Under the FIFO method, all spoilage costs are assumed to be related to the units completed during this period using the unit costs of the current period. Answer: True Difficulty: 3 Objective: 4 Terms to Learn: First-in, first-out method, spoilage 18. When spoiled goods have a disposal value, the net cost of spoilage is computed by adding the disposal value to the costs of the spoiled goods accumulated to the inspection point. Answer: False Difficulty: 2 Objective: 4 Terms to Learn: spoilage The net cost of spoilage is computed by subtracting the disposal value from the costs of the spoiled goods accumulated to the inspection point. 18-3 19. Normal spoilage costs are usually deducted from the costs of good units. Answer: False Difficulty: 2 Objective: 5 Terms to Learn: normal spoilage Normal spoilage is usually added to the cost of the good units. 20. Costs of abnormal spoilage are separately accounted for as losses of the period. Answer: True Difficulty: 2 Objective: 5 Terms to Learn: abnormal spoilage 21. Under standard costing, there is no need to calculate a cost per equivalent unit. Answer: True Difficulty: 2 Objective: 5 Terms to Learn: spoilage, standard costing 22. In job costing, costs of abnormal spoilage are not considered as inventoriable costs and are therefore written off as costs of the period in which detection occurs. Answer: True Difficulty: 3 Objective: 6 Terms to Learn: abnormal spoilage, job costing 23. In both job costing and process costing, normal spoilage attributable to a specific job is assigned to that job. Answer: False Difficulty: 3 Objective: 6 Terms to Learn: job costing, process costing, normal spoilage In process costing, spoilage costs are not assigned to that job. 24. When rework is normal and not attributable to any specific job, the costs of rework are charged to manufacturing overhead and spread through overhead allocation over all jobs. Answer: True Difficulty: 3 Objective: 7 Terms to Learn: rework 25. Abnormal spoilage costs are not considered inventoriable costs under a job-costing system. Answer: True Difficulty: 2 Objective: 7 Terms to Learn: abnormal spoilage, job-order system 18-4 26. Scrap is usually divided between normal and abnormal scrap. Answer: False Difficulty: 2 Objective: 8 Terms to Learn: scrap There is no abnormal scrap. 27. If scrap is returned to the company's storeroom and inventoried, it should not have any value in the accounting records. Answer: False Difficulty: 3 Objective: 8 Terms to Learn: scrap The scrap will be inventoried. It might not have a value in dollars but it will have a physical quantity value. 28. Many companies track scrap only in nonfinancial terms (liters, for example) and record its sale as another revenue item. Answer: True Difficulty: 2 Objective: 8 Terms to Learn: scrap 29. Costs are assigned to scrap only if it is normal scrap. Answer: False Difficulty: 2 Objective: 8 Terms to Learn: scrap Scrap is not broken down into normal and abnormal costs. 30. Accounting for scrap is very similar to accounting for byproducts. Answer: True Difficulty: 2 Objective: 8 Terms to Learn: scrap, byproducts 31. All accounting systems must assume that the inspection point occurs when a process is 100% complete. Answer: False Difficulty: 2 Objective: A Terms to Learn: inspection point All accounting systems do not have to assume that the inspection point occurs when a process is 100% complete. 18-5 MULTIPLE CHOICE 32. Managers often cite reductions in the costs of spoilage as a(n): a. major justification for implementing a just-in-time production system b. measurement of improved output quality c. immaterial item that is not to be tracked d. indication of improvement in the accounting system Answer: a Difficulty: 2 Objective: 1 Terms to Learn: spoilage 33. Unacceptable units of production that are discarded or sold for reduced prices are referred to as: a. reworked units b. spoilage c. scrap d. defective units Answer: b Difficulty: 1 Objective: 1 Terms to Learn: spoilage 34. Unacceptable units of production that are subsequently repaired and sold as acceptable finished goods are: a. reworked units b. spoilage c. scrap d. defective units Answer: a Difficulty: 1 Objective: 1 Terms to Learn: rework 35. Costs of poor quality production include the: a. opportunity cost of the plant and workers b. effect on current customers c. effect on potential customers d. All of these answers are correct. Answer: d Difficulty: 2 Objective: 1 Terms to Learn: spoilage 18-6 36. Material left over when making a product is referred to as: a. reworked units b. spoilage c. scrap d. defective units Answer: c Difficulty: 1 Objective: 1 Terms to Learn: scrap 37. A production process which involves spoilage and rework occurs in: a. the manufacture of high precision tools b. semiconductor units c. the manufacture of clothing d. All of these answers are correct. Answer: a Difficulty: 2 Objective: 1 Terms to Learn: spoilage, rework 38. Spoilage that is an inherent result of the particular production process and arises under efficient operating conditions is referred to as: a. ordinary spoilage b. normal spoilage c. abnormal spoilage d. None of these answers is correct. Answer: b Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage 39. Spoilage that should not arise under efficient operating conditions is referred to as: a. ordinary spoilage b. normal spoilage c. abnormal spoilage d. None of these answers is correct. Answer: c Difficulty: 2 Objective: 2 Terms to Learn: abnormal spoilage 40. Costs of normal spoilage are usually accounted for as: a. part of the cost of goods sold b. part of the cost of goods manufactured c. a separate line item in the income statement d. an asset in the balance sheet Answer: b Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage 18-7 41. Costs of abnormal spoilage are usually accounted for as: a. part of the cost of goods sold b. part of the cost of goods manufactured c. a separate line item in the income statement d. an asset in the balance sheet Answer: c Difficulty: 2 Objective: 2 Terms to Learn: abnormal spoilage 42. The loss from abnormal spoilage account would not appear: a. on the balance sheet b. as a detailed item in the retained earnings schedule of the balance sheet c. as a detailed item on the income statement d. Either a or b is correct. Answer: d Difficulty: 2 Objective: 2 Terms to Learn: abnormal spoilage 43. Normal spoilage should be computed using as the base the: a. total units completed b. total good units completed c. total actual units started into production d. None of these answers is correct. Answer: b Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage 44. Companies that attempt to achieve zero defects in the manufacturing process treat spoilage as: a. scrap b. reworked units c. abnormal spoilage d. normal spoilage Answer: c Difficulty: 2 Objective: 2 Terms to Learn: abnormal spoilage 18-8 45. Which one of the following conditions usually exists when comparing normal and abnormal spoilage to controllability? Normal Spoilage Abnormal Spoilage a. Controllable Controllable b. Controllable Uncontrollable c. Uncontrollable Uncontrollable d. Uncontrollable Controllable Answer: d Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage, abnormal spoilage 46. Not counting spoiled units in the equivalent-unit calculation results in: a. lower cost per good unit. b. higher cost per good unit c. better management information d. Both a and c are correct. Answer: b Difficulty: 2 Objective: 2 Terms to Learn: spoilage 47. Recognition of spoiled units when computing output units: a. highlights the costs of normal spoilage to management b. distorts the accounting data c. focuses management's attention on reducing spoilage d. Both a and c are correct. Answer: d Difficulty: 2 Objective: 2 Terms to Learn: spoilage, normal spoilage THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 48 THROUGH 52: Astoria Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $100,000 during the month. Work-in-process records revealed that 4,000 card units were started in January, 2,000 card units were complete, and 1,500 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete. 18-9 48. What are the respective direct material costs per equivalent unit, assuming spoiled units are recognized or ignored? a. $20.00; $35.00 b. $25.00; $40.00 c. $30.00; $45.00 d. $35.00; $50.00 Answer: b Difficulty: 2 Objective: 2 Terms to Learn: spoilage Calculation for Recognized Problem # Ignored Cost to account for: $100,000 $100,000 Divided by equivalent units 4,000 2,500 Cost per equivalent unit $ 25.00 (48) $ 40.00 Assigned to: Good units completed (2,000 x $25; $40) $ 50,000 $ 80,000 Normal spoilage (1,500 x $25) 37,500 0 Costs transferred out 87,500 (49/50) 80,000 WIP ending inventory (500 x $25; $40) 12,500 (51) 20,000 Cost accounted for: $100,000 $100,000 49. What is the direct material cost assigned to good units completed when spoilage units are recognized? a. $50,000 b. $100,000 c. $80,000 d. $87,500 Answer: d Difficulty: 3 Objective: 2 Terms to Learn: spoilage (see calculations for answer to question 48) 50. What is the cost transferred out assuming spoilage units are ignored? a. $87,500 b. $80,000 c. $50,000 d. $77,500 Answer: b Difficulty: 3 Objective: 2 Terms to Learn: spoilage (see calculations for answer to question 48) 18-10 51. What are the amounts allocated to the work-in-process ending inventory assuming spoilage units are recognized and ignored, respectively? a. $20,000; $24,500 b. $30,000; $34,250 c. $12,500; $20,000 d. $37,500; $40,000 Answer: c Difficulty: 3 Objective: 2 Terms to Learn: spoilage (see calculations for answer to question 48) 52. Spoilage costs allocated to ending work in process are larger by which method and by how much? a. when spoiled units are recognized, by $2,500 b. when spoiled units are recognized, by $4,250 c. when spoiled units are ignored, by $7,500 d. when spoiled units are recognized, by $7,500 Answer: c Difficulty: 3 Objective: 2 Terms to Learn: spoilage $20,000 – $12,500 = $7,500 or $15.00 x 500 units = $7,500 (see calculations for answer to question 48) 18-11 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 53 THROUGH 58: Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to nondetectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 5% of the good units. Data for December 20X5 are as follows: WIP, beginning inventory 12/1/20X5 10,000 units Direct materials (100% complete) Conversion costs (75% complete) Started during December 40,000 units Completed and transferred out 12/31/20X5 38,400 units WIP, ending inventory 12/31/20X5 8,000 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials $ 50,000 Conversion costs 30,000 Direct materials added 100,000 Conversion costs added 140,000 53. What is the number of total spoiled units? a. 1,600 units b. 2,000 units c. 2,700 units d. 3,600 units Answer: d Difficulty: 2 Objective: 2 Terms to Learn: spoilage Spoiled units = (10,000 units + 40,000) – (38,400 units + 8,000) = 3,600 units 54. Normal spoilage totals: a. 1,600 units b. 2,000 units c. 1,920 units d. 2,700 units Answer: c Difficulty: 2 Objective: 2 Terms to Learn: normal spoilage Normal spoilage = 5% x 38,400 units = 1,920 spoiled units 18-12 55. Abnormal spoilage totals: a. 1,600 units b. 2,000 units c. 1,680 units d. 1,920 units Answer: c Difficulty: 3 Objective: 2 Terms to Learn: abnormal spoilage Abnormal spoilage = 3,600 units – 1,920 units = 1,680 units (see calculations for answers to questions 53 and 54) 56. What is the total cost per equivalent unit using the weighted-average method of process costing? a. $3.00 b. $3.60 c. $6.60 d. $4.60 Answer: c Difficulty: 2 Objective: 3 Terms to Learn: spoilage, weighted-average method 18-13 Direct Materials Conversion Costs WIP, beginning inventory $ 50,000 $ 30,000 Costs added during period 100,000 140,000 Total cost to account for 150,000 170,000 Divide by equivalent units 50,000 47,200 Equivalent-unit costs $ 3.00 $ 3.60 Total cost per equivalent unit = $3.00 + $3.60 = $6.60 57. What cost is allocated to abnormal spoilage using the weighted-average process- costing method? a. $ 0 b. $ 7,360 c. $11,088 d. $16,400 Answer: c Difficulty: 2 Objective: 3 Terms to Learn: abnormal spoilage, weighted-average method 1,680 units x $6.60 = $11,088 (see calculations for answers to questions 55 and 56) 58. What are the amounts of direct materials and conversion costs assigned to ending work in process using the weighted-average process-costing method? a. $18,720; $24,000 b. $22,900; $19,820 c. $24,000; $18,720 d. $28,560; $14,160 Answer: c Difficulty: 2 Objective: 3 Terms to Learn: spoilage, weighted-average method Direct materials = 8,000 units x $3.00 = $24,000 Conversion costs = 5,200 units x $3.60 = $18,720 (see calculations for answers to question 56) 59. The cost per good unit in the weighted-average method is equal to the: a. total cost of direct materials and conversion costs per equivalent unit, plus a share of normal spoilage b. sum of the costs per equivalent unit of direct materials, and conversion costs c. total costs divided by total equivalent units d. None of these answers is correct. Answer: a Difficulty: 2 Objective: 3 Terms to Learn: spoilage, weighted-average method 18-14 60. Under the FIFO method, all spoilage costs are assumed to be related to the units: a. in beginning inventory, plus the units completed during the period b. completed during the period c. in ending inventory d. in both beginning and ending inventory plus the units completed during the period Answer: b Difficulty: 2 Objective: 4 Terms to Learn: spoilage, first-in, first-out method THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 61 THROUGH 64: Cartwright Custom Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 3% of the good units. Data provided for March 20X5 are as follows: WIP, beginning inventory 3/1/20X5 30,000 units Direct materials (100% complete) Conversion costs (89.5% complete) Started during March 80,000 units Completed and transferred out 86,000 units WIP, ending inventory 3/31/20X5 20,000 units Direct materials (100% complete) Conversion costs (75% complete) Costs: WIP, beginning inventory: Direct materials $ 70,000 Conversion costs 40,000 Direct materials added 160,000 Conversion costs added 120,000 61. What are the normal and abnormal spoilage units, respectively, for March when using FIFO? a. 2,580 units; 1,420 units b. 1,950 units; 1,390 units c. 1,690 units; 1,050 units d. 1,420 units; 2,000 units Answer: a Difficulty: 3 Objective: 4 Terms to Learn: normal spoilage, abnormal spoilage Normal spoilage = 3% x 86,000 units = 2,580 spoiled units Abnormal spoilage = (30,000 units + 80,000) – (86,000 units + 20,000) – 2,580 = 1,420 units 18-15 62. What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing? a. $5,890.64; $9,133.20 b. $5,890.64; $5,826.00 c. $6,469.64; $7,690.36 d. $9,133.20; $5,026.80 Answer: d Difficulty: 3 Objective: 4 Terms to Learn: first-in, first-out method, normal spoilage, abnormal spoilage Direct Materials Conversion Costs WIP, beginning inventory Costs added during period $160,000 $ 120,000 Total cost to account for 160,000 120,000 Divided by equivalent units 80,000* 78,150** Equivalent-unit costs $ 2.00 $ 1.54 (56,000 + 2,580 + 1,420 + 20,000) = 80,000 units (see calculations for answers to question 61) (3,150 + 56,000 + 2,580 + 1,420 + 15,000) = 78,150 units Normal Spoilage = 2,580 units x $3.54 = $9,133.20 Abnormal Spoilage = 1,420 units x $3.54 = $5,026.80 63. What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO method of process costing? a. $38,250; $24,850 b. $40,000; $23,100 c. $40,000; $21,590 d. $49,500; $13,600 Answer: b Difficulty: 3 Objective: 4 Terms to Learn: first-in, first-out method, spoilage Direct materials: 20,000 units x $2.00 = $40,000 Conversion costs: 15,000 units x $1.54 = $23,100 (see calculations for answers to question 62) 18-16 64. Which of the following journal entries correctly represents the transfer of completed goods for the current period using the FIFO method of process costing? a. Finished Goods 10,560.28 Loss from Spoilage 10,560.28 b. Loss from Spoilage 5,026.80 Finished Goods 5,026.80 c. Finished Goods 327,251.00 Work in Process 327,251.00 d. Finished Goods 401,700.00 Work in Process 401,700.00 Answer: c Difficulty: 3 Objective: 4 Terms to Learn: first-in, first-out method, spoilage Abnormal spoilage $ 5,026.80 Beginning WIP — completed 110,000.00 Costs added 4,851.00 Started and completed 198,240.00 Normal spoilage 9,133.20 Total cost transferred out $327,251.00 (see calculations for answers to questions 62 and 63) 65. The standard-costing method: a. adds a layer of complexity to the calculation of equivalent-unit costs in a process-costing environment b. makes calculating equivalent-unit costs unnecessary c. requires an analysis of the spoilage costs in beginning inventory d. requires an analysis of the spoilage costs in ending inventory Answer: b Difficulty: 2 Objective: 5 Terms to Learn: standard-costing method, spoilage 66. The inspection point is the a. stage of the production cycle where products are checked to determine whether they are acceptable or unacceptable units b. point at which costs are allocated between normal and abnormal spoilage c. point at which the calculation of equivalent units is made d. None of these answers is correct. Answer: a Difficulty: 2 Objective: 5 Terms to Learn: inspection point 18-17 67. When spoiled goods have a disposal value, the net cost of the spoilage is computed by: a. deducting disposal value from the costs of the spoiled goods accumulated to the inspection point b. adding the costs to complete a salable product to the costs accumulated to the inspection point c. calculating the costs incurred to the inspection point d. None of these answers is correct. Answer: a Difficulty: 2 Objective: 5 Terms to Learn: spoilage 68. The costs of normal spoilage are allocated to the units in ending work-in-process inventory, in addition to completed units if the units: a. in ending inventory have not passed the inspection point b. in ending work-in-process inventory have passed the inspection point c. in ending work in process inventory are more than 50% complete d. in ending work-in-process inventory are less than 50% complete Answer: b Difficulty: 3 Objective: 5 Terms to Learn: inspection point, normal spoilage 69. The Harleysville Manufacturing Shop produces motorcycle parts. Typically, 10 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $50.00 per unit. Spoiled pieces may be disposed at $10.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 2,500 good parts. Which of the following journal entries properly reflects the recording of spoiled goods? a. Materials Control 200 Manufacturing Overhead Control 800 Work-in-Process Control 1,000 b. Materials Control 250 Manufacturing Overhead Control 1,000 Work-in-Process Control 1,250 c. Work-in-Process Control 1,250 Materials Control 250 Manufacturing Overhead Control 1,000 d. Manufacturing Overhead Control 1,000 Materials Control 200 Work-in-Process Control 800 Answer: b Difficulty: 2 Objective: 6 Terms to Learn: spoilage, inspection point 18-18 Materials Control: 25 pieces x $10.00 = $250 Manufacturing Overhead Control: 25 pieces x ($50.00 – $10.00) = $1,000 WIP Control: 25 pieces x $50.00 = $1,250 70. The Harleysville Manufacturing Shop produces motorcycle parts. Typically, 10 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $50.00 per unit. Spoiled pieces may be disposed at $10.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. Job 101 requires the production of 2,500 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101? a. Work-in-Process Control 100 Materials Control 100 b. Materials Control 100 Work-in-Process Control 100 c. Materials Control 250 Work-in-Process Control 250 d. Work-in-Process Control 250 Materials Control 250 Answer: c Difficulty: 2 Objective: 6 Terms to Learn: normal spoilage, inspection point 25 pieces x $10.00 = $250 71. A difference between job costing and process costing is that: a. job-costing systems usually do not distinguish between normal spoilage attributable to all jobs and normal spoilage attributable to a specific job b. job-costing systems usually distinguish between normal spoilage attributable to a specific job and spoilage common to all jobs c. process costing normally does not distinguish between normal spoilage attributable to a specific job and spoilage common to all jobs d. Both b and c are correct. Answer: d Difficulty: 2 Objective: 6 Terms to Learn: spoilage, normal spoilage 18-19 72. Which of the following entries reflects the original cost assignment before production items are reworked? a. Work-in-Process Control XXX Materials Control XXX Wages Payable Control XXX Manufacturing Overhead Allocated XXX b. Finished Goods Control XXX Work-in-Process Control XXX c. Manufacturing Overhead Allocated XXX Materials Control XXX Wages Payable Control XXX Work-in-Process Control XXX d. Materials Control XXX Wages Payable Control XXX Work-in-Process Control XXX Manufacturing Overhead Allocated XXX Answer: a Difficulty:2 Objective: 7 Terms to Learn: rework 73. Accounting for rework in a process-costing system: a. accounts for normal rework in the same way as a job-costing system b. requires abnormal rework to be distinguished from normal rework c. if the rew
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