19.6 job costing rework Flashcards
refers to units of productin that are inspected, determined to be unacceptable, repairs, and sold as acceptable finished good
rework
normal rework attributable to
a specific job
normal rework common to
all jobs
if the rework is normal but occurs because of the requirements of a specific job, the rework costs
are charged to that job
the costs of rework when it is normall and not attributable to a specific job are
charged to manufacturing overhead and are spread through overhead alllocation over all job
if the rework is abnormal, it is
charged to a loss account
the cost of rework prompts managers to seek ways to reduce rework, for example
redesigning products or processes
training workers
investing in new machines