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In its July 2012 production, Gage Corp., which does not use a standard cost system, incurred total production costs of $800,000, of which Gage attributed $30,000 to normal spoilage and $20,000 to abnormal spoilage. Gage should account for this spoilage as A. Period cost of $30,000 and inventoriable cost of $20,000. B. Inventoriable cost of $30,000 and period cost of $20,000. C. Period cost of $50,000. D. Inventoriable cost of $50,000. |