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The cost associated with abnormal spoilage ordinarily is charged to:

A. Inventory.

B. A material variance account.

C. Manufacturing overhead.

D. A special loss account.

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Question added by Hany Sabry , Finance Manager , Coffee Adress
Date Posted: 2015/01/25
Syed Sheraz Haider
by Syed Sheraz Haider , BRANCH ACCOUNTANT , BIG BIRD POULTRY BREEDERS (PVT) LTD

D

Umer Sharif
by Umer Sharif , Head Of Accounts Dept , Allied Petroleum Pvt Ltd

Abnormal loss cannot be adjustable in prices as normal losses does. Answer is "D"

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

OPTION (D) IS THE CORRECT ANSWER.

Yusuf Chotejan Baig
by Yusuf Chotejan Baig , Accounts Manager

 

The loss is abnormal in nature and any abnormal loss should be charged to P&L Account. 

Muhammad Sarmad Akram
by Muhammad Sarmad Akram , Accounts Administration Manager , Best All Traders

D1 st req. Indentify nature and cause and appropriate action than2nd req. must be expensed out in the period they incurred.

shabeer kanakkantey kanty
by shabeer kanakkantey kanty , ACCOUNTANT , Volcane advertising.l.l.c

option D is the correct answer 

Khurram Shaukat Memon
by Khurram Shaukat Memon , Senior Auditor , A.A. Baig and Company Chartered accountants

I think answer is option (c).

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