Question

17. Which of the following is an example of spoilage? A) short lengths from woodworking operations that cannot be used to make another product B) edges from plastic molding operations that result from the main product's manufacturing process but have little or no value C) defective units of laptops detected after the production process but rework before the units are sold as good products to customers D) defective men's button down cotton collar dress shirts that have small pulls in the material and must be sold as discounted "seconds" in the factory store 18. Spoilage that is an inherent result of the particular production process and arises even under efficient operating conditions is referred to as A) incremental spoilage B) normal spoilage C) irregular spoilage D) direct spoilage 19) Spoilage that is not inherent in a particular production process and would not arise under efficient operating conditions is referred to as A) incremental spoilage B) usual spoilage C) abnormal spoilage D) indirect spoilage 20) Costs of normal spoilage are usually accounted for as A) a deduction from the cost of goods sold B) a component of the costs of good units manufactured C) a "loss from normal spoilage account" in income statement D) a liability on a balance sheet

Answer 1

17) Answer A

short lengths from wood working operations that can not be used to make another product.

18) Answer B

Normal Spoilage

19) Answer C

Abnormal Spoilage

20) Answer B

A component of the costs of good units manufactured.