Rework account in MCW

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Aug 6th, 2022
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How to rework account in MCW

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hey welcome to edx world another video in the igcse accounting series till now weamp;#39;ve covered most of the topics in the syllabus and the videos are there in the playlist you can watch them they are in order after covering the syllabus iamp;#39;ve also covered some examples on structured questions again you can watch them also today i thought i will make a video on multiple choice questions only multiple choice questions and as you know the cambridge board has increased the number of multiple choice questions to 35 the entire paper one will be only on multiple choice questions so i thought iamp;#39;ll do a video exclusively on mcqs and show you how to solve mcqs so when you see the questions you may pause the video for a second and try to solve it play the video see if the answer matches understand my explanation on an average you should take one and a half to two minutes for each multiple choice question so letamp;#39;s begin this video the first question that i have for you

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Reworkunits of production that do not meet the specifications required by customers but which are subsequently repaired and sold as good finished goods. Scrapresidual material that results from manufacturing a product. Scrap has low total sales value compared with the total sales value of the product.
Abnormal Rework: Abnormal rework and spoilage costs which were over and above the estimation of the company are charged to a separate loss account. This helps focus management attention on them.
Rework is that part of the final produce which has not been accepted by the client because it does not meet the required specifications. However, those specifications can be met by working on the item once again. Hence the name rework.
The rework is the cost that is incurred on the produced goods to meet the standard set by the client. When the produced goods are not accepted by the clients, then the same products are sent to the process again to remove the shortcoming in the products and this is called rework.
Rework costs: Rework costs are incurred when defective products or processes are identified and need to be fixed or modified to meet the quality requirements. For instance, if a product is found to have a manufacturing defect during quality control, it may need to be reworked or repaired before it can be sold.
Expert-Verified Answer In accounting, this transaction requires the company to recognize that they are owed money for the services rendered. Therefore, the Accounts Receivable account is debited to reflect this increase in assets (money owed by clients).
What is Rework? In contrast to scrap, rework refers to finished goods that dont meet quality standards, but can be adjusted or repaired to get them to a level of quality that is acceptable for customers.
Rework in production is the process of repairing things that are defective, failed, or non-conforming during or after inspection. Disassembly, repair, replacement, reassembly, and other tasks are included in this procedure.

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