Answer (A) is correct . Normal rework costs incurred because of factors common to all units produced ordinarily are charged to factory overhead control to spread the costs over all good units.
Answer (B) is incorrect because In a process-costing application, normal rework is customarily charged to overhead. In a job-order costing application, normal rework costs related to specific jobs are usually charged to the work-in-process account for the given job, not the control account.
Answer (C) is incorrect because Rework costs are not charged to finished goods.
Answer (D) is incorrect because Rework costs are applied to good units or, in the case of abnormal rework, charged to a loss account.
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