In job costing, costs of abnormal spoilage are not considered as inventoriable costs and are therefore written off as costs of the period in which detection occurs.

Question

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Abnormal spoilage is considered an expense of the period in which it occurs and is not included as an inventoriable cost. Therefore, it is not included in calculating the cost of goods sold or the cost of inventory.

In Job Costing, Costs of Abnormal Spoilage Are Not Considered