About this document
Managing Production Losses in Job Costing by Ella Davis is a document available to read on EtoBox.
Normal production losses are considered part of the cost of production, while abnormal losses are charged to a loss account. There are three types of production losses under job order costing: scrap, spoiled goods, and reworking defective goods. Scrap is leftover material from production that has little value. The accounting treatment of scrap depends on whether it can be traced to a specific job. If so, it reduces the material costs of that job. If not, it reduces factory overhead costs.
- Author
- Ella Davis
- Language
- EN