Question: A contractor purchases cleaning solvent for $11,640. According to Cost Accounting Standard (CAS) 411, if the material cost for the solvent is not allocated to

A contractor purchases cleaning solvent for $11,640. According to Cost Accounting Standard (CAS) 411, if the material cost for the solvent is not allocated to a specific cost objective or an indirect material cost pool, how should the contractor account for it? Account for the $11,640 as material inventory. Subtract the $11,640 from an indirect material cost pool. Create a new indirect labor cost objective and allocate the $11,640 to it. Allocate the $11,640 to a direct labor cost objective

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