Dapper Dan Draperies manufactures and installs custom-ordered draperies.

REQUIRED
A. For all drapes, occasionally the sewing equipment malfunctions and the drape must be reworked. Explain how to account for the cost of rework when it is needed.
B. Explain how to account for the cost of rework when customers choose a fabric that is known to require rework.
C. Explain why scrap will always arise in this business.
D. Dapper Dan can sell scraps to quilting groups or just throw them away. List several factors that could affect this decision.
E. If Dapper Dan decides to sell scraps, explain the accounting choices for recording the sales value. Provide one advantage and one disadvantage of each method.