BRF Company operates a machine shop in which it mills custom parts out of titanium, steel, aluminum, and other metals. During the month of May it completed Job 356, consisting of titanium parts, for a total cost of $20,000. During May, the company accumulated titanium scrap worth $1,000 from all jobs. During June, the scrap was sold for $1,000. The company's accountant considers the value of titanium scrap to be material.
a)Assume that 50% of the scrap can be associated with Job 356, but that the rest of the scrap resulted from several other jobs and was not traced individually. Write out the scrap journal entry(ies)required for May and June if the company's policy is to record titanium scrap during the month of production.
b)Assume that none of the scrap is traced to individual jobs. Write out the scrap journal entry(ies)required for May and June if the company's policy is to record titanium scrap at the time of sale.
c)Describe one advantage and one disadvantage to BRF of recording scrap at the time of production.
d)Describe one advantage and one disadvantage to BRF of tracing the cost of titanium scrap to individual jobs.

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The Answer of BRF Company operates a machine shop in which it mills custom parts out of titanium, steel, aluminum, and other metals. During the month of May it completed Job 356, consisting of titanium parts, for a total cost of $20,000. During May, the company accumulated titanium scrap worth $1,000 from all jobs. During June, the scrap was sold for $1,000. The company's accountant considers the value of titanium scrap to be material.
a)Assume that 50% of the scrap can be associated with Job 356, but that the rest of the scrap resulted from several other jobs and was not traced individually. Write out the scrap journal entry(ies)required for May and June if the company's policy is to record titanium scrap during the month of production.
b)Assume that none of the scrap is traced to individual jobs. Write out the scrap journal entry(ies)required for May and June if the company's policy is to record titanium scrap at the time of sale.
c)Describe one advantage and one disadvantage to BRF of recording scrap at the time of production.
d)Describe one advantage and one disadvantage to BRF of tracing the cost of titanium scrap to individual jobs.

BRF Company Operates a Machine Shop in Which It Mills