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
$\text {\underline{ debited to} }$ $\text {\underline{ credited to} }$

Question

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
$\text {\underline{ debited to} }$                  $\text {\underline{ credited to} }$

Quizplus · Accepted Answer

The recovery value of abnormal spoilage should be accounted for by debiting a scrap inventory account and crediting the specific job in process. This way, the cost of the spoiled goods does not affect the cost of production for the job, and the recovery value can be tracked separately as income from the sale of scrap. Option B is incorrect because overhead costs are indirect costs that cannot be directly traced to specific jobs. Option C is incorrect because it implies that the cost of spoilage is charged directly to the job, which would inflate the cost of production for the job. Option D is incorrect because factory overhead sales are not related to abnormal spoilage.

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