When accounting for the costs of abnormal spoilage at the end of the period, the costs of abnormal spoilage are
A) included as part of the cost of unit completed.
B) expensed as loss on abnormal spoilage in the current period.
C) included in the cost of finished goods.
D) expensed as closing work in process in the current period.

Question

Quizplus · Accepted Answer

Abnormal spoilage is not a normal part of production; it is unexpected and results in loss. Therefore, it should be expensed in the current period as loss on abnormal spoilage. It should not be included in the cost of unit completed or finished goods or treated as closing work in progress.

When Accounting for the Costs of Abnormal Spoilage at the End