UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

192. Correct answer b. Normal spoilage should be part of the normal cost of manufacturing

goods and should be charged to good units produced. Abnormal spoilage, not a part of

normal operations, should be expensed as a period cost when detected.

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