Depending on the nature of rework done on a particular unit, the cost can be charged to one of three specific accounts.

Which of the following is correct?

a. Abnormal rework is charged to a Loss from Abnormal Rework account.

b. Abnormal rework is charged to the Work-in-Process Inventory account.

c. Normal rework for a particular job is charged to that specific job's Finished Goods Inventory account.

d. Normal rework common to all jobs is charged to the Work-In-Process Inventory account.

Answer rating: 100% (QA)

Answer Depending on the nature of rework being done on a particular unit of product the cos... View the full answer