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Question 112 - MB-335 discussion

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A company produces rubber hose. Discrete orders accounts for raw material scrap. The scrap is reported through inventory movement journals.

The company has noticed that most of the scrap that is recorded is due to start up that feeds the hose to the finishing process. In addition, the amount of scrap that is recorded is consistent regardless of the amount of hose being produced.

You need to account for material lost during startup.

What should you do?

A.

Enter the amount of scrap that is consumed as constant scrap in the Bill of materials

Answers
A.

Enter the amount of scrap that is consumed as constant scrap in the Bill of materials

B.

Do a case study for the scrap items and enter The average amount of scrap as a separate line items on the Sill of materials.

Answers
B.

Do a case study for the scrap items and enter The average amount of scrap as a separate line items on the Sill of materials.

C.

Enter the consumption amount on the line to match the actual amount used.

Answers
C.

Enter the consumption amount on the line to match the actual amount used.

D.

Enter the amount of scrap that is consumed as variable scrap in the Bill of materials.

Answers
D.

Enter the amount of scrap that is consumed as variable scrap in the Bill of materials.

Suggested answer: A
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asked 05/10/2024
Miguel Medina Parra
26 questions
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