When Spoiled Goods Have a Disposal Value, the Net Cost

When spoiled goods have a disposal value, the net cost of the spoilage is computed by:

A) deducting disposal value from the costs of the spoiled goods accumulated to the inspection point
B) adding the costs to complete a salable product to the costs accumulated to the inspection point
C) calculating the costs incurred to the inspection point
D) None of these answers is correct.