Which of the Following Entries Reflects the Original Cost Assignment

question 46

Multiple Choice

Which of the following entries reflects the original cost assignment to spoiled units before considering rework cost?

• A)
• \(\begin{array}{ll}
• \text { Work-in-Process Control }&XXX\\
• \text { Materials Control } &&XXX \\
• \text { Wages Payable Control } && XXX \\
• \text { Manufacturing Overhead Allocated } && XXX
• \end{array}\)
• B)
• \(\begin{array} { l }
• \text { Finished Goods Control}&XXX \\
• \text {Work-in-Process Control }&&XXX \\
• \end{array}\)
• C)
• \(\begin{array} { l }
• \text { Manufacturing Overhead Allocated }&XXX \\
• \text { Materials Control }&&XXX \\
• \text {Wages Payable Control }&&XXX \\
• \text{work-in process control }&&XXX \\
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Materials Control } & XXX \\
• \text { Wages Payable Control } & XXX\\
• \text {Work-in-Process Control }&&XXX \\
• \text { Manufacturing Overhead Allocated}&&XXX \\
• \end{array}\)

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Definitions:

Own Stock

Refers to the possession of shares in a company, indicating partial ownership.

Corporate Bonds

Debt securities issued by corporations to raise capital, with promise to repay the principal amount along with specified interest rates over a period.

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power gained or lost.

Inflation

The speed at which the overall price level for goods and services increases, leading to a decrease in buying power.