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Question 16/20
A company that produces rubber hose using Discreet orders accounts for raw material scrap after report as finished though 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?
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?
