If a spoilage is normal (expected), the cost of spoiled units is:
A)recorded as a liability in the balance sheet.
B)added to the cost of good units produced.
C)assigned to the spoilage loss account.
D)credited to the profit and loss account.

Question

Quizplus · Accepted Answer

When spoilage is normal or expected, the cost of spoiled units is typically added to the cost of good units produced. This means the cost is absorbed by the cost of goods sold, spreading the spoilage cost across all units, rather than being treated as a separate expense or loss.

If a Spoilage Is Normal (Expected), the Cost of Spoiled