Question 1
Which of the following is a journal entry to recognize the disposal value?
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Work-in-Process Control | XXX |
Manufacturing Overhead Control | XXX |
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Work-in-Process Control | XXX |
Manufacturing Overhead Control | XXX |
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Manufacturing Overhead Control | XXX |
Work-in-Process Control | XXX |
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Work-in-Process Control | XXX |
Question 2
Which of the following sentences is true of classification of spoilage as normal or abnormal when inventories are present?
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Classifying spoilage as normal rather than abnormal results in same current operating income. | |
◦ Classifying spoilage as normal rather than abnormal results in an decrease in current operating income.
◦ Classifying spoilage as abnormal rather than normal results in an increase in current operating income.
◦ Classifying spoilage as normal rather than abnormal results in an increase in current operating income.