If scrap, common to all jobs, is returned to the storeroom and the time between the scrap being inventoried and its disposal is quite lengthy, the journal entry is:

Question

Quizplus · Accepted Answer

The scrap being returned to the storeroom indicates that it is a material, hence the entry should be made in the Materials Control account. The time between its inventory and disposal is not relevant to this transaction, so options A and C can be ruled out. Option B is not suitable as scrap is not considered to be a raw material but rather a byproduct or waste. Therefore, the correct option is D.

If Scrap, Common to All Jobs, Is Returned to the Storeroom