Describe how the following occurrences should be accounted for based on the fact pattern presented: a. Certain

Question:

Describe how the following occurrences should be accounted for based on the fact pattern presented:
a. Certain amounts of spoilage and waste are normal in the production system and affect all jobs.
b. A certain amount of spoilage occurs that is unique to a particular job. There is no disposal value for the spoiled units.
c. Because of a nonroutine malfunction in a production machine, a number of products in Work in Process Inventory were ruined. The quantity of work lost is assumed to be abnormal. There is some for the spoiled units.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...