Which of the following is true of abnormal spoilage? a. It is considered to be part of production. b. It is normally treated as a period cost c. It is normally treated as a product cost. d. It is prorated between cost of goods sold and inventory.

Which of the following is true of abnormal spoilage? a. It is considered to be part of production. b. It is normally treated as a period cost c. It is normally treated as a product cost. d. It is prorated between cost of goods sold and inventory.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 30Q: After a product is inspected, some units may be classified as spoiled and others as defective. What...

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Question

Which of the following is true of abnormal spoilage?

a. It is considered to be part of production.
b. It is normally treated as a period cost
c. It is normally treated as a product cost.
d. It is prorated between cost of goods sold and inventory.

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