成本與管理會計亨格瑞第版英文版CA5

Spoilage,Rework,andScrapCHAPTER18TerminologySpoilage,rework,andscraphavedistinctivedefinitionsincostaccountingthatmaynotbethedefinitioncommonlyused.P510（639）Itisimportantthatthesetermsbeusedproperly,aseachreceivesadifferentaccountingtreatment.Terminology,conts.Spoilageisunitsofproductionthatdonotmeetthespecificationsrequiredbycustomersforgoodunitsandarediscardedorsoldatreducedprices.Reworkisunitsofproductionthatdonotmeetthespecificationsrequiredbycustomersbutarerepairedandsoldasgoodfinishedunits.Spoiledunitscanbereworked,butonlyataconsiderablecostScrapisresidualmaterialthatresultsfrommanufacturingaproduct.Ithasloworzerosalesvalue.SpoilageDifferenttypesofSpoilageP511（639）Spoilageisdividedintotwotypes:normalspoilageandabnormalspoilage.Normalspoilageisspoilageinherentintheproductionprocess.

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

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

Spoilage,conts.AccountingforspoilageinprocesscostingusingtheFIFOorWAmethodissimilartotheapproachdiscussedinthepreviouschapter.P515(643)Normalandabnormalunitsaretreatedasadditionalunitgroupsforwhichcost-per-equivalent-unitneedstobecalculatedandcostsassigned.Spoilagecostsarealwaysconsideredtohaveoccurredinthecurrentperiodandarenotincludedinthecostofendingwork-in-processinventory.Spoilage,conts.ExampleP513(641)Spoilage,conts.ExampleP513(641)Spoilage,conts.P514(642)Spoilage,conts.P516(644),WAMehhodSpoilage,conts.P516(644),WAMethodSpoilage,conts.P517(645),FIFOMethodSpoilage,conts.P517(645),FIFOMethodSpoilage,conts.Accountingforspoilageinprocess-costingsystemsusingthestandard-costingmethodisverysimilartothestandard-costingmethoddiscussedinthepreviouschapter.P518(646)Theonlydifferenceisthatthenormalandabnormalunitsaretreatedasadditionalunitgroupsforwhichcost-per-equivalent-unitneedstobecalculatedandcostsassigned.Spoilage,conts.Accountingforspoilageinprocess-costingsystemsusingthestandard-costingmethodisverysimilartothestandard-costingmethoddiscussedinthepreviouschapter.Costsareassignedtonormalandabnormalspoilageunitsusingstandardcosts.Aswiththeweighted-averageandFIFOmethods,thecostsofnormalspoilageareincludedinthetotalcoststoaccountforandthecostsassignedtounitscompletedandtransferredout.Spoilage,conts.P519(647),SCMethodSpoilage,conts.P519(647),SCMethodSpoilage,conts.Theinspectionpointisthestageofcompletionatwhichproductsareexaminedtodetermineiftheyareacceptableunits.P520(648)Spoilageistypicallyassumedtooccuratthestageofcompletionwhereinspectiontakesplace.Spoilage,conts.Theconceptsofnormalandabnormalspoilagealsoapplytojob-costingsystems.Abnormalspoilageisaperiodcostandtreatedasanexpenseoftheperiodinwhichitoccurs.Normalspoilageisinventoriableandincludedasacostoftheproduct.Companiesfrequentlydistinguishbetweennormalspoilageattributabletoaspecificjobfromnormalspoilagecommontoalljobs.Spoilage,conts.Theconceptsofnormalandabnormalspoilagealsoapplytojob-costingsystems.P520(648)Whennormalspoilageisconsideredattributabletoaspecificjob,thatjobbearsthecostofthespoilage.Whennormalspoilageisconsideredattributabletoalljobs,itisacharacteristicoftheproductionprocessandisallocatedasamanufacturingoverheadcost.Spoilage,conts.ReworkUnitsthatarereworkedareunitsthathavebeeninspectedandfoundtobeunacceptable.However,theseunitsaresuchthattheycanberepairedandsoldasacceptablefinishedunits.P522(650)Normalreworkattributabletoaspecificjobischargedtothatjob.Rework,conts.Ifitisnormalreworkcommontoalljobs,thecostsarechargedtomanufacturingoverheadandspreadoveralljobs.Ifthereworkisconsideredabnormal,thecostsofthereworkarechargedtoa““LossfromAbnormalRework”account.Rework,conts.ScrapScrapistheleftovermaterialresultingfrommanufacturingaproduct.Ithasalow(orzero)salesvalue.P523(651)Twoaspectsofac