Question

An unexpected spoilage that is not part of normal operations is charged to:

a.Cost of Goods Sold.
b.Loss from Abnormal Spoilage.
c.Finished Goods.
d.Work in Process.

Answer 1

Unexpected spoilage not part of normal operations is charged to 'Loss from Abnormal Spoilage.' This ensures proper accounting without distorting regular costs.

Step-by-step explanation:

When a student asks about where to charge unexpected spoilage not part of normal operations, it is important to consider standard accounting practices. In this case, the correct charge for unexpected spoilage that occurs outside of the normal operations is to a specific account titled 'Loss from Abnormal Spoilage.' This ensures that the costs are accounted for properly and do not distort the regular cost of goods or inventory records.