The costs from abnormal spoilage should appear
A)on the balance sheet as part of finished goods inventory.
B)as a separate inventory item.
C)as a detailed item on the income statement.
D)as part of cost of goods manufactured.
E)either on the balance sheet as part of finished goods inventory, or as a separate inventory item.

Question

Quizplus · Accepted Answer

The costs from abnormal spoilage are considered a loss and are included in the income statement as a detailed item. They are not included as part of finished goods inventory, a separate inventory item, or cost of goods manufactured.

The Costs from Abnormal Spoilage Should Appear