Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 18, Problem 18.12Q
“The costs of rework are always charged to the specific jobs in which the defects were originally discovered.” Do you agree? Explain.
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“In job costing, the costs of normal spoilage that occur while a specific job is being done are charged to the specific job.”Do you agree? Explain.
What are the flaws in William's analysis? Should production be outsourced? Support your answer with appropriate calculations.
1. Which of the following is NOT a key characteristic of Conformance Costs?
a) They include expenses related to preventing defects.
b) They are also known as Internal Failure Costs.
e) They encompass activities like employee training and quality engineering.
d) They are incurred to ensure defect-free products.
Chapter 18 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 18 - Why is there an unmistakable trend in...Ch. 18 - Distinguish among spoilage, rework, and scrap.Ch. 18 - Normal spoilage is planned spoilage. Discuss.Ch. 18 - Costs of abnormal spoilage are losses. Explain.Ch. 18 - What has been regarded as normal spoilage in the...Ch. 18 - Units of abnormal spoilage are inferred rather...Ch. 18 - In accounting for spoiled units, we are dealing...Ch. 18 - Total input includes abnormal as well as normal...Ch. 18 - Prob. 18.9QCh. 18 - The unit cost of normal spoilage is the same as...
Ch. 18 - In job costing, the costs of normal spoilage that...Ch. 18 - The costs of rework are always charged to the...Ch. 18 - Abnormal rework costs should be charged to a loss...Ch. 18 - When is a company justified in inventorying scrap?Ch. 18 - How do managers use information about scrap?Ch. 18 - Prob. 18.16MCQCh. 18 - Which of the following is a TRUE statement...Ch. 18 - Healthy Dinners Co. produces frozen dinners for...Ch. 18 - Fresh Products, Inc. incurred the following costs...Ch. 18 - Normal and abnormal spoilage in units. The...Ch. 18 - Weighted-average method, spoilage, equivalent...Ch. 18 - Weighted-average method, assigning costs...Ch. 18 - FIFO method, spoilage, equivalent units. Refer to...Ch. 18 - FIFO method, assigning costs (continuation of...Ch. 18 - Weighted-average method, spoilage. LaCroix Company...Ch. 18 - FIFO method, spoilage. 1. Do Exercise 18-25 using...Ch. 18 - Spoilage, journal entries. Plastique produces...Ch. 18 - Recognition of loss from spoilage. Spheres Toys...Ch. 18 - Weighted-average method, spoilage. LogicCo is a...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Standard-costing method, spoilage. Refer to the...Ch. 18 - Spoilage and job costing. (L. Bamber) Barrett...Ch. 18 - Reworked units, costs of rework. Heyer Appliances...Ch. 18 - Scrap, job costing. The Russell Company has an...Ch. 18 - Weighted-average method, spoilage. World Class...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Weighted-average method, shipping department...Ch. 18 - FIFO method, shipping department (continuation of...Ch. 18 - Physical units, inspection at various levels of...Ch. 18 - Spoilage in job costing. Jellyfish Machine Shop is...Ch. 18 - Rework in job costing, journal entry (continuation...Ch. 18 - Scrap at time of sale or at time of production,...Ch. 18 - Physical units, inspection at various stages of...Ch. 18 - Weighted-average method, inspection at 80%...Ch. 18 - Job costing, classifying spoilage, ethics....
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- Which of the following is not a prevention cost? a. testing finished products b. design engineering c. operator training d. preventive maintenancearrow_forwardWhich of the following is an example of a cost item that should be classified as an internal failure cost? Question 11 options: Product return costs Inspection costs Rework costs Employee training costsarrow_forwardWhat features of the cost accounting system would be expected to prevent the omission ofrecording materials used in production?arrow_forward
- 1. How much is the total prevention costs? 2. How much is the total appraisal costs? 3. How much is the total internal failure costs? 4. How much is the total external failure costs?arrow_forwardThe theory of constraints suggests that the improvement efforts should usually be focused on: a. Work centers that are not constraints b. The work center that is the constraint c. The work center with the highest total cost. d. The work center with the most obsolete equipment.arrow_forwardWhy is materials inspection a prevention costs rather than an appraisal costs?arrow_forward
- In a process account, abnormal losses are valued:A. at their scrap value.B. the same as good production.C. at the cost of raw materials.D. at good production cost less scrap value.arrow_forward“The unit cost of normal spoilage is the same as the unit cost of abnormal spoilage.”Do you agree? Explain.arrow_forward(Appendix 11A) Which of the following would be classified as an external failure cost on a quality cost report? Multiple Choice Repairs and replacements beyond the warranty period. Quality engineering. Systems development. Quality training.arrow_forward
- Is corrective action always necessary when actual costs are higher than standard costs?arrow_forwardMatch each definition with its related term by selecting the appropriate term in the dropdown provided. (Select "None of these are correct" if there is no term for the "Definition".) Possible terms: Activity-Based Costing Appraisal or Inspection Costs Batch-Level Activities External Failure Costs Facility-Level Activities Just-in-Time System None of These are Correct Prevention Costs Unit-Level Activities Value Chain Value-Added Activityarrow_forwardWhich is TRUE about services? a.Services cannot have work-in-process inventories. b.Some services may require that a sequence of uniform processes be performed. c.Services can never be homogeneous and repetitively produced. d.All services require job-order costing.arrow_forward
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Job Costing and Spoilage | Topic 2 | Spoilage, Re-work, and Scrap; Author: Samantha Taylor;https://www.youtube.com/watch?v=VP55_W2oXic;License: CC-BY