Costing - Study Mode

[#361] Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate
Correct Answer

(D) total spoilage

Explanation

Solution: Sum of beginning work in process inventory units and started units, is subtracted from sum of ending work in process inventory units and transferred out units of goods to calculate total spoilage.

[#362] Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as
Correct Answer

(C) rework

Explanation

Solution: Production units that do not meet customer specification, but can be sold to other customers as finished goods are classified as rework. Rework refers to the correction of a product that does not initially meet an entity's minimum quality standards.

[#363] An example of rework is
Correct Answer

(C) detection of defective pieces before shipment

Explanation

Solution: An example of rework is detection of defective pieces before shipment. Rework refers to the correction of a product that does not initially meet an entity's minimum quality standards.

[#364] If transferred out total cost is $1850000 and number of good units (produced), then cost per good unit transferred out and completed can be
Correct Answer

(B) 255.1724

[#365] Aspects of accounting for scrap includes
Correct Answer

(D) both a and c

Explanation

Solution: Aspects of accounting for scrap includes physical tracking and inventory costing.