4. Scrap is A) units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished units B) products of a joint production process that have low total sales values relative to the total sales value of the main product C) residual material that results from manufacturing a product D) units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are discarded or sold at reduced prices 7 5 An item classified as spoilage has no value. A) True B) False 6 Rework is finished production that is NOT in accordance with customer desires. The product is redone and sold as finished goods. A) True B) False Scrap and rework are considered to be the same thing by managerial accountants. A) True B) False 8. For each of the following items identify whether it is spoilage, reworked units, or scrap. _a. Defective shirts sold as seconds b. End cuts from suit-making operations c. Edges from plastic moldings d. Carpets sold as seconds e. Precision tools that are not built successfully to the necessary tolerance, but which can be successfully converted to a saleable product f. Rock extracted as a result of mining processing g. Complex defective products such as semiconductors