The net cost of normal spoilage in a job-order costing system in which spoilage is common to all jobs should be

Question

Quizplus · Accepted Answer

In a job-order costing system, the net cost of normal spoilage should be charged to manufacturing overhead during the period of the spoilage. This is because normal spoilage is an inevitable part of the production process and cannot be attributed to any specific job. By charging it to manufacturing overhead, the cost is spread out among all the jobs that are produced during the period, and it becomes part of the cost of production. This also helps to ensure that each job bears a fair share of the cost of normal spoilage. Therefore, option B is the best choice.

The Net Cost of Normal Spoilage in a Job-Order Costing