Asked by Trevia Knight on Jun 10, 2024
Verified
In which of the following ways is abnormal spoilage accounted for?
A) Expensed in the period in which it occurred
B) Included as part of the unit cost of output
C) Written off to cost of goods sold
D) Included in inventory valuation until year-end and then written off
Abnormal Spoilage
This is the waste or loss of production materials that exceeds the normal level expected during the manufacturing process.
Unit Cost
The cost incurred to produce, store, and sell one unit of a product, calculated by dividing the total cost by the number of units produced.
Inventory Valuation
The method used to assign a monetary value to a company's inventory, taking into account the costs of acquiring, producing, and storing the products.
- Recognize the treatment of abnormal spoilage in process costing.
Verified Answer
Learning Objectives
- Recognize the treatment of abnormal spoilage in process costing.
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