All spoilage costs are related to the units completed during the period using the unit costs of the current period under FIFO.

Question

Quizplus · Accepted Answer

Spoilage costs are assigned to the units completed during the period, which means that they are included in the unit cost of the current period. Using the FIFO method ensures that the spoilage costs are incorporated into the unit costs of the earliest units completed, which is appropriate since they were the ones that incurred the spoilage costs.

All Spoilage Costs Are Related to the Units Completed During