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Horngren’s Cost Accounting – Chapter 18: Spoilage, Rework, and Scrap | Complete Test Bank with Answers

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This document contains the test bank for Chapter 18 of Horngren’s Cost Accounting: A Managerial Emphasis. It focuses on spoilage, rework, and scrap—covering definitions, accounting treatments, journal entries, and distinctions between normal and abnormal spoilage. The material includes multiple-choice questions, exercises, and detailed solutions that align with standard textbook learning objectives. Perfect for students preparing for quizzes, midterms, and final exams in cost and managerial accounting.

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Voorbeeld van de inhoud

3/9/24, 10:24 AM Test Bank Horngren Chapter 18 - Spoilage Rework Scrap

3/24/22, 5:07 PM Chapter 18 test bank with answers Horngren's Cost Accounting: A Manager…




Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren)
Chapt er18 Spoi l
age,Rewor k,andSc rap

18.
1 Obj
ect
ive18.
1

1)Whi chofthef ollowingde fine sspoi
lage?
A)unitsofpr oduc t
iont hatdonotme etthespec i
fic at
ionsr equir
edb ycust
ome r
sbuttha
taresubsequent
ly
repai
redands ol
da sgoodfini shedunits
B)unitsofpr oduc t
ionwhe therfull
yorpa rt
iall
yc ompleted,thatdonotme etthespe
cificat
ionsre
quired
bycustome rsforgooduni tsanda r
ediscar
de dors ol
da tr e
duc e
dpr i
ces
C)resi
dua lma teria
lt ha
tre sult
sfrom ma nufacturi
ngapr oduct
D)produc tsofaj ointproduc ti
onpr oces
stha thavelowt otalsal
esvaluesre
lat
ivetot
hetot
alsal
esvalueof
thema i
npr oduc t
Answe r:B
Di
ff:2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

2)Whi chofthefol
lo wingde scr
ibesrework?
A)uni t
sofproductiont hatdonotme etthespeci
fic at
ionsr equir
edbyc us
tomersbuttha
tare
subs equentl
yrepaireda nds ol
da sgoodfini shedunits
B)pr oductsofajointpr oducti
onpr oces
sthathavelow t
otalsalesval
uesrel
ati
vetothetot
als
alesval
ueof
thema inproduct
C)uni t
sofproductionwhe t
herfullyorpart
ial
lycompleted, t
hatdonotme ett
hes pe
cificat
ions
requiredb ycust
ome rsforgooduni t
sanda r
edi s
cardedors oldatreduc
edpr i
ces
D)r esidualmateri
alt hatres
ultsfr
om manuf ac
turingaproduc t
Ans we r:A
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

3)Whichoft hefoll
owingi sane xampleofs poil
age ?
A)shortlengthsfr
om woodwor kingoper at
ionstha tcannotbeuse dtoma keanotherproduct
B)edgesfrom plast
icmol di
ngope r
ati
onst hatre
s ultfr
om t hemainpr oduct'
sma nuf
acturi
ngpr oces
sbut
haveli
ttl
eornoval ue
C)defect
iveunitsoflaptopsde t
ectedaftertheproduc tionproce
s sbutreworkedbe f
oretheunitsareso
ld
asgoodpr oductstocustome r
s
D)defect
iveme n'sbutt
ondownc ott
onc oll
ardres sshi
r tst
hathavesma llpull
sinthema te
rialandmus tbe
sol
da sdiscounted"sec
onds "inthefactorys t
ore
Answe r
:D
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng




1
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,3/9/24, 10:24 AM Test Bank Horngren Chapter 18 - Spoilage Rework Scrap

3/24/22, 5:07 PM Chapter 18 test bank with answers Horngren's Cost Accounting: A Manager…




4)Whi choft hefol
lowi ngbe stdescri
bess c
rap?
A)uni t
sofpr oductiont hatdonotme etthespecificat
ionsr equiredbycus
tome r
sbuttha
tare
subs equent l
yrepaireda nds oldasgoodfini shedunits
B)pr oduc tsofajointpr oductionprocessthathavelow t
otalsa l
esvalue
srel
ati
vetothetot
als
ales
valueoft hema i
npr oduc t
C)r esidualma teri
altha tres
ultsfrom manuf act
uringaproduc t
D)uni tsofproductionwhet herfull
yorpar ti
all
yc omple
ted, t
ha tdonotmeetthespec
ificat
ions
require db ycust
ome r
sf orgooduni tsanda redisc
ardedors olda tr
educedpri
ces
Ans we r:C
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

5)A leat
hers hoemanuf acture rma kes"duc k"bootsthatcons i
stoflea
therandr ubbe r
.Someoft hebooks
arede f
ect
ivea ndares oldint hef actorys t
or eatdeepdiscounts.Le at
hers t
ripsfrom t hecutti
ngpr oces
s
andr ubbers havi
ngsar ebypr oduc tsoft hepr ocess
.Thel eatherstr
ipshavenous eandar ediscar
de d
whilether ubberscrapsarec olle c
te dandpe ri
odical
lypickedupbyar ecyclingc ompanya tnocosttothe
shoemanuf act
urer.Whi choft hef ollo
wi ngc l
assi
fic ati
onsoft heseite
mswoul dbeac c
urate?
A)thedef ecti
vebootsar espoi l
a gea ndt heleatherandther ubberares c
rap
B)thede f
ec ti
veboots,leat
hera ndr ubberar es cr
apbutt heshoe saremor eva l
ua blescrapastheyc anbe
sol
d
C)thede fecti
vebootsa respoila ge, theleatherstri
psarescrap,a ndtherubbe risr ework
D)a l
lthreei t
emsar espoil
age
Answe r:A
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

6)Whichoft hefoll
owi ngisane xampleofscra
p?
A)shortlengthsfr
om woodwor kingoperat
ionsthatmustbedisc
arded
B)defe
c t
iveunitsoflaptopsdetecte
daftertheproduct
ionproces
sbutrewor
kedbef
oret
heunit
sar
es ol
d
asgoodpr oductstocus t
ome r
s
C)defect
ivealuminum c anssoldtoaluminum manuf a
cturer
sforremel
ti
ngtopr
oduceot
heral
uminum
products
D)defect
iveshirts
,je
ans ,shoes
,andc ar
petingsoldassec
onds
Answer:A
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

7)Someamount
sofs
poi
lage
,re
wor
k,ors
cra
par
einhe
renti
nma
nypr
oduc
tionpr
oce
sses
.
Answer:TRUE
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng




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,3/9/24, 10:24 AM Test Bank Horngren Chapter 18 - Spoilage Rework Scrap

3/24/22, 5:07 PM Chapter 18 test bank with answers Horngren's Cost Accounting: A Manager…




8)Ani t
emc l
a s
sifiedasspoila
gehasnoval
ue .
Answe r
:F ALSE
Explanat
ion:Al t
houghtheit
em doesno
tme ett
hes
pec
ific
ati
ons
,itma
ybes
oldasa"
sec
ond"orf
ori
ts
scr
apvalue.Itisnotne
cess
aril
ythrownout
.
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

9)Re workedgoodsareunacce
ptabl
eunitsofproduc
tionusual
lyNOTcapableofbeingrepai
redor
convertedintoasal
abl
eproduct.
Ans wer:F ALSE
Explana t
ion:Rewor
kisunit
sofproduct
ionthatdonotme ett
hespec
ificat
ionsrequiredbycust
omer
sbut
thataresubsequent
lyre
paire
da ndsol
dasgoodfini she
duni t
s.
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

10)Re
workisfini
she
dproduc
tiontha
tisNOTi
nac
cor
danc
ewi
thc
ust
ome
rdes
ire
s.Thepr
oduc
tis
r
edoneandsol
dasfinis
hedgoods.
Answer:TRUE
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

11)Re wor kisres
idualmater
ialthatres
ultsfr
om ma nufa
cturi
ngapr oductandc anhaveeit
herahighor
l
ow s alesva l
uerel
ati
vetothepr oductwithwhi chitisassoc
iat
ed.
Ans wer :FALSE
Explana ti
on:Sc r
apisres
idualma t
eri
althatre
sultsfrom manufactur
ingapr oduct.
Examplesareshor
t
l
e ngthsf r
om woodwor ki
ngoper ati
ons,edgesfrom plast
icmoldingoperati
ons,andfraye
dc l
othandend
cutsfrom s ui
t-maki
ngope r
ations.Scr
apc ansome ti
me sbesoldforrel
ati
vel
ys mallamounts.
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

12)Scra
pandr ewor
karecons
ider
edt
obethesamethi
ngbymana
geri
ala
ccount
ant
s.
Answe r:FALSE
Explanati
on:Sc
rapandre
wor kar
eno
tconsi
der
edtobethes
amethi
ngbymanager
ialac
count
ant
s.
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

13)Thereisnodiffer
encebetweenscr
apwhichcanbesol
dforre
lat
ive
lys
malla
mounta
ndabyproduc
t.
Answe r
:F ALSE
Explanat
ion:Thediffer
enceisthats
crapar
ise
sasares
idualf
rom t
hemanuf
act
uri
ngpr
oce
ssandisno
ta
producttar
gete
dformanufac
tureorsal
ebythefirm.
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng




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, 3/9/24, 10:24 AM Test Bank Horngren Chapter 18 - Spoilage Rework Scrap

3/24/22, 5:07 PM Chapter 18 test bank with answers Horngren's Cost Accounting: A Manager…




14)Di
sti
ngui
sha mongspoil
age,r
eworkedunit
s,ands c
rap.Giveanexampleofeach.
Answer:Spo
il
ageref
erstounacc
eptabl
eunit
sofpr oduct
ionthatar
edisc
ardedoraresol
dforreduc
ed
pri
ces
.Bothpar
tial
lycomplet
edorf ul
lyc
ompletedunitsofoutputca
nbes poi
led.
Examplesa
redefec
tive
cl
othe
ssoldasseco
nds.

Rewo r
kedunitsar
eunacc
epta
bleuni
tsofproduct
ionthataresubsequent
lyrepai
redandsoldasacce
ptabl
e
fini shedgoods.Def
ecti
veunit
sofproduct(
suchaspagers,computerdis
kdr i
ves,c
omputers
,and
t
e l
ephones )det
ect
edduri
ngproduct
ionorimmedi a
tel
ya f
terproducti
onbutbe f
oreuni
tsareshi
ppedto
customers,cansomet
imesberewor
kedands ol
da sgoodproduc t
s.

Scra
pi sma t
eri
alleftoverwhe nmakingaproduct
.Ithaslow s
ale
sval
uecomparedwiththesal
esval
ueof
theproduc t
.Exampl esareshavi
ngsandshortl
engthsfr
om woodworki
ngopera
tionsandedgesle
ftove
r
from plas
ticmoldingoper a
tions
.
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng

1
5)Fore
achoft
hef
oll
owi
ngi
temsi
dent
if
ywhe
the
riti
sspoi
lage
,re
wor
keduni
ts,
ors
cra
p.

_
____
___ a. Defect
ives hir
tssoldasse conds
_
____
___ b. Endc utsfrom suit
-makingope rati
onst hatarediscarded
_
____
___ c. Edgesf r
om pl a
sti
cmo l
dingst hatisal ow valuebypr oduct
_
____
___ d. Carpetssoldass econdsinaf act
oryout letatade epdiscount
_
____
___ e. Preci
siontoolsthatarenotbui l
tsuc c
essfullytothene ce
ssaryt
oler
anc
e,
butwhi chcanbes uccessfullyconvertedtoas al
eableproduct
___
_____ f . Roc ke xtra
c t
edasar esultofmi ningpr ocessing
___
_____ g . Compl exde f
ecti
vepr oduc tssucha ssemi conductors
Answer:
a.s poil
age
b.s cr
ap
c.s cr
ap
d. spoi
lage
e. spoi
lageandr ework
f
. s cr
ap
g.s poi
lage(us
ua l
lytooc omplextor ewor k)
Di
ff: 2
Obj
ect
ive
:1
AACSB:Anal
yti
calt
hinki
ng




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