Question: In its April 2009 production, Hern Corp., which does not use a standard cost system, incurred total production costs of $900,000, of which Hern attributed
In its April 2009 production, Hern Corp., which does not use a standard cost system, incurred total production costs of $900,000, of which Hern attributed $60,000 to normal spoilage and $30,000 to abnormal spoilage. Hern should account for this spoilage as
a. Period cost of $90,000.
b. Inventoriable cost of $90,000.
c. Period cost of $60,000 and inventoriable cost of
$30,000.
d. Inventoriable cost of $60,000 and period cost of
$30,000.
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