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

Since the scrap has been returned to the storeroom, it is still considered to be a part of materials inventory. When the scrap is eventually disposed of, it will be charged to manufacturing overhead as a miscellaneous expense. Therefore, the appropriate journal entry would be to credit Materials Control and debit Manufacturing Overhead Control. Option D is the only one that includes both of these accounts.

If Scrap,common to All Jobs,is Returned to the Storeroom and the Time