1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andrew11 [14]
3 years ago
8

In a process-costing system, the cost of abnormal spoilage should be A. Included in the cost of units transferred out. B. Prorat

ed between units transferred out and ending inventory. C. Ignored. D. Treated as a loss in the period incurred.
Business
1 answer:
Olin [163]3 years ago
4 0

Answer:

D. Treated as a loss in the period incurred.

Explanation:

The process-costing system is used by firms that produce goods that goes through a set of manufacturing departments i.e it's used when firms mass produce nearly identical or similar units through various processes.

Under process-costing system, direct costs of production are accumulated,  summarized, and then assigned to all the units produced during the period.

Thus, a single product cost is calculated by dividing process cost in each manufacturing department by the respective units produced during the production period.

Some organizations that use the process-costing system are oil refineries, chemical processing companies, eraser manufacturing companies, and food production companies.

In a process-costing system, the cost of abnormal spoilage should be treated as a loss in the period incurred.

The abnormal spoilage refers to the cost exceeding normal level, associated with spoiled units of a manufacturing process. It should be treated as a loss in the period incurred because it cannot be recovered

You might be interested in
Using the data below, determine the ending inventory amount assuming the weighted average method under a periodic inventory syst
Lelechka [254]
The ending inventory amount is b. $1,200
5 0
3 years ago
Why do i sometimes need to chose between my wants and needs
maksim [4K]

Answer: needs are more important than wants ! you need to water to survive but want the new PS5.

Explanation:

8 0
2 years ago
Ben is working on a marketing campaign for luxury homes. His target customers are those that want to move to that state. Ben wan
baherus [9]
Answer to your question is B
7 0
3 years ago
Read 2 more answers
Which of these are examples of opportunity cost?
Irina-Kira [14]

<em>Answer: The opportunity cost is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the opportunity cost is planting a different crop, or an alternate use of the resources</em>

<em />

<em>Explanation:</em>

6 0
2 years ago
Dividends cause a(n) increase/decrease)_________ in equity and are recorded directly in
Artyom0805 [142]

Answer:

Decrease (debit) in equity, Cash Dividends Payable (credit, liability account)

Explanation:

The journal entry to record the declaration of the cash dividends involves a decrease (debit) to Retained Earnings (a stockholders' equity account) and an increase (credit) to Cash Dividends Payable (a liability account).

(opentextbc.ca)

6 0
3 years ago
Other questions:
  • A company buys tracking software for its warehouse which, along with the computer system and ancillaries to run it, will cost $1
    7·1 answer
  • You put up $40 at the beginning of the year for an investment. The value of the investment grows 5% and you earn a dividend of $
    14·1 answer
  • A customer has requested that Lewelling Corporation fill a special order for 2,600 units of product S47 for $31 a unit. While th
    5·1 answer
  • NewLinePhone Corp. is very risky, with a beta equal to 2.8 and a standard deviation of returns of 32%. The risk-free rate of ret
    8·1 answer
  • The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of decl
    15·1 answer
  • Which option best describes MacHack 6?
    10·1 answer
  • All other things unchanged, a general decrease in the amount of government borrowing will typically: a increase interest rates.
    5·1 answer
  • On October 5, your company buys and receives inventory costing $5,000, on terms 2/30, n/60. On October 20, your company pays the
    5·1 answer
  • Sheridan Company issues 3600 shares of its $10 par value common stock having a fair value of $20 per share and 5600 shares of it
    9·1 answer
  • There is overwhelming evidence that environmental and situational factors strongly affect leadership.Of the following,which is t
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!