The sum of beginning work in process inventory units and started units, is subtracted from the sum of ending work in process inventory units and transferred out units of goods, to calculate ____________?
Correct answer: D. total spoilage
- A. Gross weighted spoilage
- B. inventoriable spoilage
- C. partial spoilage
- D. total spoilage
Explanation
Total spoilage is found by reconciling units: beginning work in process plus units started, less ending work in process and units transferred out. The remaining units are spoiled units.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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