Manufacturing
Recording Normal Spoilage
Adding the cost of expected/unavoidable waste to the cost of the good units produced.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Work-in-Process (Good Units) | Asset (+) | 200.00 | - |
| Work-in-Process (Spoiled Units) | Asset (-) | - | 200.00 |
💡 Accountant's Note
Normal spoilage is considered a product cost. The 'good' products absorb the cost of the 'bad' ones that are expected in a normal run.
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