All of the following methods may be used to account for the revenue from scrap sales except:
A)Credit Factory Overhead,if the scrap cannot be identified with a specific job.
B)Credit Materials,if the scrap would have been able to be recycled.
C)Credit Work in Process,if the scrap is identified with a specific job.
D)Credit Scrap Revenue,which is included in the "Other Income" section of the income statement.

Question

Quizplus · Accepted Answer

Crediting Materials for scrap sales would not be appropriate, as the scrap would have been recycled and not considered as a direct material cost. All other options are valid methods for accounting for revenue from scrap sales.

All of the Following Methods May Be Used to Account