成本與管理會(huì)計(jì)學(xué)第13版英文版CA18

成本與管理會(huì)計(jì)學(xué)第13版英文版CA18Spoilage,

Rework,

and

Scrap?1/5/2023CHAPTER

18Terminology?1/5/2023Spoilage,

rework,

and

scrap

have

distinctivedefinitions

in

cost

accounting

that

may

not

be

thedefinition

commonly

used.

P510（639）It

is

important

that

these

terms

be

usedproperly,

as

each

receives

a

differentaccounting

treatment.Terminology

,conts.?1/5/2023Spoilage

is

units

of

production

that

do

not

meet

thespecifications

required

by

customers

for

good

units

andare

discarded

or

sold

at

reduced

prices.Rework

is

units

of

production

that

do

not

meet

thespecifications

required

by

customers

but

are

repaired

andsold

as

good

finished

units.Spoiled

units

can

be

reworked

,but

only

at

a

considerablecostScrap

is

residual

material

that

results

from

manufacturia

product.It

has

low

or

zero

sales

value.Spoilage?1/5/2023Different

types

of

Spoilage

P511（639）

Spoilage

is

divided

into

two

types:

normal

spoilageand

abnormal

spoilage.Normal

spoilage

is

spoilage

inherent

in

theproduction

process.It

is

viewed

arising

even

in

an

efficientmanufacturing

process.Typically,

normal

spoilage

is

included

as

a

part

ofthe

cost

of

good

units

manufactured.Units

considered

normal

spoilage

in

a

process-costing

system

are

counted

in

computingcompleted

units.Spoilage,conts.?1/5/2023

Abnormal

spoilage

is

spoilage

that

is

not

considered

apart

of

the

production

process

and

does

not

arise

underefficient

operating

conditions.Abnormal

spoilage

is

regarded

as

avoidable

andcontrollable.To

highlight

the

abnormal

spoilage

,companiescalculate

the

units

of

abnormal

spoilage

and

record

thecost

in

a

“Loss

from

Abnormal

Spoilage”

account,which

appears

as

a

separate

line

item

in

the

incomestatement.Some

companies

regard

all

spoilage

as

abnormal

inorder

to

make

all

spoilage

visible.Spoilage

,conts.?1/5/2023Illustration:

in

January

2008,mendonza

incurs

costs

of

$615000

toproduce

20500

units.

of

these

20500

units,20000

units

are

good

units

and500

units

are

spoiled

units.

of

500

spoiled

units,400

units

are

spoiled

because

theinjection

molding

machine

are

unable

to

manufacturegood

casings

100%

of

the

time.

the

remaining

100

units

are

spoiled

because

ofmachine

breakdown

and

operation

errors.Spoilage

,conts.?1/5/2023Accounting

for

Spoilage?1/5/2023Accounting

for

spoilage

aims

to

determine

themagnitude

of

spoilage

costs

and

to

distinguishbetween

costs

of

normal

and

abnormal

spoilageTo

manage,

control

and

reduce

spoilage

costs,

theyshould

be

highlighted,

not

simply

folded

intoproduction

costsSpoilage

,conts.?1/5/2023The

five-step

procedure

for

process

costing

(discussedin

Chapter

17)

needs

only

slight

modification

toaccommodate

accounting

for

spoilage.P514(642)Step

1:Summarize

the

Flow

of

Physical

Units

ofOutput.

Units

of

both

normal

and

abnormal

spoilageare

identified.Step

2:Compute

Output

in

Terms

of

EquivalentUnits.

Include

a

calculation

for

equivalent

units

forspoilage.Spoilage,conts.?1/5/2023The

five-step

procedure

for

process

costing

needsonly

slight

modification

to

accommodate

accountingfor

spoilage.Step

3:Summarize

Total

Costs

to

Account

For.

Thisis

all

costs

debited

to

the

Work-in-Process

account.Step

4:Compute

Cost

per

Equivalent

Unit.Step

5:Assign

Total

Costs

to

Units

Completed,

toSpoiled

Units,

and

to

Units

in

Ending

Work-in-Process.Spoilage,conts.?1/5/2023Accounting

for

spoilage

in

process

costing

usingthe

FIFO

or

WA

method

is

similar

to

theapproach

discussed

in

the

previous

chapter.P515(643)Normal

and

abnormal

units

are

treated

as

additionalunit

groups

for

which

cost-per-equivalent-unit

needs

tobe

calculated

and

costs

assigned.Spoilage

costs

are

always

considered

to

have

occurredin

the

current

period

and

are

not

included

in

the

cost

ofending

work-in-process

inventory.SExpleoP51i3(l64a1)

ge,conts.?1/5/2023SExpleoP5i13l(64a1)ge,conts.?1/5/2023Spoilage,conts.P514(642)?1/5/2023SP5p16o(6i44)l,WaA

Mgehheod,conts.?1/5/2023Spoilage,conts.P516(644),WA

Method?1/5/2023P5S17p(64o5)i,FIlFOaMegtheod

,conts.?1/5/2023PS517p(6o45)i,FlIFaO

Mgetheod,conts.?1/5/2023Spoilage,conts.?1/5/2023Accounting

for

spoilage

in

process-costingsystems

using

the

standard-costing

methodis

very

similar

to

the

standard-costingmethod

discussed

in

the

previous

chapter.P518(646)The

only

difference

is

that

the

normal

andabnormal

units

are

treated

as

additional

unitgroups

for

which

cost-per-equivalent-unitneeds

to

be

calculated

and

costs

assigned.Spoilage,conts.?1/5/2023Accounting

for

spoilage

in

process-costingsystems

using

the

standard-costing

method

isvery

similar

to

the

standard-costing

methoddiscussed

in

the

previous

chapter.Costs

are

assigned

to

normal

and

abnormal

spoilageunits

using

standard

costs.As

with

the

weighted-average

and

FIFO

methods,

thecosts

of

normal

spoilage

are

included

in

the

total

coststo

account

for

and

the

costs

assigned

to

unitscompleted

and

transferred

out.PS519p(6o47)i,SlC

Maetghode,conts.?1/5/2023PS519p(6o47i),SlC

Maetghode,conts.?1/5/2023Spoilage,conts.?1/5/2023The

inspection

point

is

the

stage

ofcompletion

at

which

products

are

examinedto

determine

if

they

are

acceptable

units.P520(648)Spoilage

is

typically

assumed

to

occur

at

thestage

of

completion

where

inspection

takesplace.Spoilage,conts.?1/5/2023The

concepts

of

normal

and

abnormal

spoilagealso

apply

to

job-costing

systems.Abnormal

spoilage

is

a

period

cost

and

treatedas

an

expense

of

the

period

in

which

it

occurs.Normal

spoilage

is

inventoriable

and

includedas

a

cost

of

the

product.Companies

frequently

distinguish

betweennormal

spoilage

attributable

to

a

specific

jobfrom

normal

spoilage

common

to

all

jobs.Spoilage,conts.?1/5/2023The

concepts

of

normal

and

abnormal

spoilage

alsoapply

to

job-costing

systems.

P520(648)When

normal

spoilage

is

considered

attributableto

a

specific

job,

that

job

bears

the

cost

of

thespoilage.When

normal

spoilage

is

considered

attributableto

all

jobs,

it

is

a

characteristic

of

the

productionprocess

and

is

allocated

as

a

manufacturingoverhead

cost.Spoilage,conts.?1/5/2023Rework?1/5/2023Units

that

are

reworked

are

units

that

havebeen

inspected

and

found

to

beunacceptable.

However,

these

units

aresuch

that

they

can

be

repaired

and

sold

asacceptable

finished

units.

P522(650)Normal

rework

attributable

to

a

specific

jobis

charged

to

that

job.Rework,conts.?1/5/2023If

it

is

normal

rework

common

to

all

jobs,the

costs

are

charged

to

manufacturingoverhead

and

spread

over

all

jobs.If

the

rework

is

considered

abnormal,

thecosts

of

the

rework

are

charged

to

a

“Lossfrom

Abnormal

Rework”

account.Rework,conts.?1/5/2023Scrap?1/5/2023Scrap

is

the

leftover

material

resulting

frommanufacturing

a

product.

It

has

a

low

(or

zero)sales

value.P523(651)Two

aspects

of

accounting

for

scrap

are:Planning