Spoilage, Rework, and Scrap Job Order Costing
A. Definition Spoilage : units of production—whether fully or partially completed—that do not meet the specifications required by customers for good units and are discarded or sold at reduced prices. Some examples of spoilage are defective shirts, jeans, shoes, and carpeting sold as “seconds” and defective aluminum cans sold to aluminum manufacturers for remelting to produce other aluminum products. Rework : units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished units. For example, defective units of products (such as smartphones, tablets, and laptops) detected during or after the production process but before the units are shipped to customers can sometimes be reworked and sold as good products. Scrap : residual material that results from manufacturing a product. Examples are short lengths from woodworking operations, edges from plastic molding operations, and frayed cloth and end cuts from su...
Komentar
Posting Komentar