Eldervale Winery produces premium wine in the Hunter Valley.Jasmine Droll,the vineyard manager who is responsible for overseeing the grape harvest,ignores company guidelines and decides to hire some inexperienced harvest workers.As a result a lot of good grapes are wasted.For the purpose of product costing,the losses associated with this grape wastage should be treated as:

Question

Quizplus · Accepted Answer

The grape wastage caused by the inexperienced harvest workers is abnormal spoilage as it occurred due to human error and is not a regular occurrence. Abnormal spoilage is usually excluded from product costing calculations.

Eldervale Winery Produces Premium Wine in the Hunter Valley