If abnormal spoilage occurs in a job-order costing system,has a material dollar value,and is related to a specific job,the recovery value of the spoiled goods should be

Question

Quizplus · Accepted Answer

Abnormal spoilage in a job-order costing system should be recorded in a separate scrap inventory account, which can then be sold or reused. If the spoilage is related to a specific job, the value of the spoiled goods should be charged to that job in process. Therefore, choice A (a scrap inventory account the specific job in process) is the best option.

If Abnormal Spoilage Occurs in a Job-Order Costing System,has a Material