成本與管理會計(jì)學(xué)第13版英文版CA18

成本與管理會計(jì)學(xué)第13版英文版CA18Spoilage,Rework,andScrapCHAPTER182023/1/302TerminologySpoilage,rework,andscraphavedistinctivedefinitionsincostaccountingthatmaynotbethedefinitioncommonlyused.P510（639）Itisimportantthatthesetermsbeusedproperly,aseachreceivesadifferentaccountingtreatment.2023/1/303Terminology,conts.Spoilageisunitsofproductionthatdonotmeetthespecificationsrequiredbycustomersforgoodunitsandarediscardedorsoldatreducedprices.Reworkisunitsofproductionthatdonotmeetthespecificationsrequiredbycustomersbutarerepairedandsoldasgoodfinishedunits.Spoiledunitscanbereworked,butonlyataconsiderablecostScrapisresidualmaterialthatresultsfrommanufacturingaproduct.Ithasloworzerosalesvalue.2023/1/304SpoilageDifferenttypesofSpoilageP511（639）Spoilageisdividedintotwotypes:normalspoilageandabnormalspoilage.Normalspoilageisspoilageinherentintheproductionprocess.

Itisviewedarisingeveninanefficientmanufacturingprocess.Typically,normalspoilageisincludedasapartofthecostofgoodunitsmanufactured.Unitsconsiderednormalspoilageinaprocess-costingsystemarecountedincomputingcompletedunits.2023/1/305Spoilage,conts.Abnormalspoilageisspoilagethatisnotconsideredapartoftheproductionprocessanddoesnotariseunderefficientoperatingconditions.Abnormalspoilageisregardedasavoidableandcontrollable.Tohighlighttheabnormalspoilage,companiescalculatetheunitsofabnormalspoilageandrecordthecostina“LossfromAbnormalSpoilage”account,whichappearsasaseparatelineitemintheincomestatement.Somecompaniesregardallspoilageasabnormalinordertomakeallspoilagevisible.2023/1/306Spoilage,conts.Illustration:inJanuary2008,mendonzaincurscostsof$615000toproduce20500units.ofthese20500units,20000unitsaregoodunitsand500unitsarespoiledunits.of500spoiledunits,400unitsarespoiledbecausetheinjectionmoldingmachineareunabletomanufacturegoodcasings100%ofthetime.theremaining100unitsarespoiledbecauseofmachinebreakdownandoperationerrors.2023/1/307Spoilage,conts.2023/1/308AccountingforSpoilageAccountingforspoilageaimstodeterminethemagnitudeofspoilagecostsandtodistinguishbetweencostsofnormalandabnormalspoilageTomanage,controlandreducespoilagecosts,theyshouldbehighlighted,notsimplyfoldedintoproductioncosts2023/1/309Spoilage,conts.Thefive-stepprocedureforprocesscosting(discussedinChapter17)needsonlyslightmodificationtoaccommodateaccountingforspoilage.P514(642)Step1:SummarizetheFlowofPhysicalUnitsofOutput.Unitsofbothnormalandabnormalspoilageareidentified.Step2:ComputeOutputinTermsofEquivalentUnits.Includeacalculationforequivalentunitsforspoilage.2023/1/3010Spoilage,conts.Thefive-stepprocedureforprocesscostingneedsonlyslightmodificationtoaccommodateaccountingforspoilage.Step3:SummarizeTotalCoststoAccountFor.ThisisallcostsdebitedtotheWork-in-Processaccount.Step4:ComputeCostperEquivalentUnit.

Step5:AssignTotalCoststoUnitsCompleted,toSpoiledUnits,andtoUnitsinEndingWork-in-Process.

2023/1/3011Spoilage,conts.AccountingforspoilageinprocesscostingusingtheFIFOorWAmethodissimilartotheapproachdiscussedinthepreviouschapter.P515(643)Normalandabnormalunitsaretreatedasadditionalunitgroupsforwhichcost-per-equivalent-unitneedstobecalculatedandcostsassigned.Spoilagecostsarealwaysconsideredtohaveoccurredinthecurrentperiodandarenotincludedinthecostofendingwork-in-processinventory.2023/1/3012Spoilage,conts.ExleP513(641)2023/1/3013Spoilage,conts.ExleP513(641)2023/1/3014Spoilage,conts.P514(642)2023/1/3015Spoilage,conts.P516(644),WAMehhod2023/1/3016Spoilage,conts.P516(644),WAMethod2023/1/3017Spoilage,conts.P517(645),FIFOMethod2023/1/3018Spoilage,conts.P517(645),FIFOMethod2023/1/3019Spoilage,conts.Accountingforspoilageinprocess-costingsystemsusingthestandard-costingmethodisverysimilartothestandard-costingmethoddiscussedinthepreviouschapter.P518(646)Theonlydifferenceisthatthenormalandabnormalunitsaretreatedasadditionalunitgroupsforwhichcost-per-equivalent-unitneedstobecalculatedandcostsassigned.2023/1/3020Spoilage,conts.Accountingforspoilageinprocess-costingsystemsusingthestandard-costingmethodisverysimilartothestandard-costingmethoddiscussedinthepreviouschapter.Costsareassignedtonormalandabnormalspoilageunitsusingstandardcosts.Aswiththeweighted-averageandFIFOmethods,thecostsofnormalspoilageareincludedinthetotalcoststoaccountforandthecostsassignedtounitscompletedandtransferredout.2023/1/3021Spoilage,conts.P519(647),SCMethod2023/1/3022Spoilage,conts.P519(647),SCMethod2023/1/3023Spoilage,conts.Theinspectionpointisthestageofcompletionatwhichproductsareexaminedtodetermineiftheyareacceptableunits.P520(648)Spoilageistypicallyassumedtooccuratthestageofcompletionwhereinspectiontakesplace.2023/1/3024Spoilage,conts.Theconceptsofnormalandabnormalspoilagealsoapplytojob-costingsystems.Abnormalspoilageisaperiodcostandtreatedasanexpenseoftheperiodinwhichitoccurs.Normalspoilageisinventoriableandincludedasacostoftheproduct.Companiesfrequentlydistinguishbetweennormalspoilageattributabletoaspecificjobfromnormalspoilagecommontoalljobs.2023/1/3025Spoilage,conts.Theconceptsofnormalandabnormalspoilagealsoapplytojob-costingsystems.P520(648)Whennormalspoilageisconsideredattributabletoaspecificjob,thatjobbearsthecostofthespoilage.Whennormalspoilageisconsideredattributabletoalljobs,itisacharacteristicoftheproductionprocessandisallocatedasamanufacturingoverheadcost.2023/1/3026Spoilage,conts.2023/1/3027ReworkUnitsthatarereworkedareunitsthathavebeeninspectedandfoundtobeunacceptable.However,theseunitsaresuchthattheycanberepairedandsoldasacceptablefinishedunits.P522(650)Normalreworkattributabletoaspecificjobischargedtothatjob.2023/1/3028Rework,conts.Ifitisnormalreworkcommontoalljobs,thecostsarechargedtomanufacturingoverheadandspreadoveralljobs.Ifthereworkisconsideredabnormal,thecostsofthereworkarechargedtoa“LossfromAbnormalRework”account.2023/1/3029Rework,conts.2023/1/3030ScrapScrapistheleftovermaterialresultingfrommanufacturingaproduct.Ithasalow(orzero)salesvalue.P523(651)Twoaspectsofaccountingforscrapare:Planningandcontrol,includingphysicaltr