If Scrap Is Reused as Direct Material Rather Than Sold

question 37

Multiple Choice

If scrap is reused as direct material rather than sold as scrap, which of the following would be the proper account?

• A) Accounts Receivable is debited at its estimated net realizable value and then credited when the scrap is reused
• B) Materials Control is debited at its estimated net realizable value and then credited when the scrap is reused
• C) Manufacturing Overhead Control is debited at its estimated net realizable value and then credited when the scrap is reused
• D) Work-in-Process Control is debited at its estimated net realizable value and then credited when the scrap is reused

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Definitions:

Preoperational

Refers to Piaget's stage of cognitive development in children aged 2 to 7, characterized by symbolic thinking, egocentrism, and a lack of logical operations.

Cognitive-Developmental Theory

A theory of psychological development that emphasizes the growth and changes in how people think over time, including understanding the nature of intelligence.

Social-Learning Theory

A theory that suggests people learn new behaviors through observation and imitation of others, rather than through direct experience.

Psychoanalytic Theory

A theory of personality development, originated by Sigmund Freud, which emphasizes unconscious motives and conflicts.