[Anonymous]

Becker Question –

If it’s normal spoilage it goes to COS if abnormal it should be period expense.

Why answer is $60K. I do see the explanation and it does not make sense.

Can somebody help me out?

Thank you

[Anonymous]

Normal Spoilage = is part of inventory cost

Only 1/2 of inventory was sold, so only 1/2 of inventory became COGS

so only 1/2 of normal spoilage was expensed—>20,000/2=$10,000

Abnormal Spoilage = is period expense

It's separate from COGS and the entire amount is charged during the period

So the entire $50,000 is expensed

$50,000+$10,000 = $60,000

[Anonymous]

thank you Acct.

I just got it! LOL

I have been studying since 9 am. I only have 8 days( now 7) to finish BEC.

[Anonymous]

Great!

Wow, you put in a lot of time today! I only managed to put in about an hour and a half after work today, and that was only because the library was open late today so I was able to study there in peace. I'm hoping to put in 4 more hours tonight.

You're taking BEC on the 30th? Me too!

Good luck!!!

[Anonymous]

thanks!

this is going to be my quarter! 🙂

good luck to you 2

[Author]

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