A company uses a process cost system in accounting for its single product. The cost of
units failing final inspection, termed normal spoilage, is added to the inventory cost of the
good units produced. Units spoiled during production are termed abnormal spoilage, and
their cost is immediately written off to cost of goods sold. During the previous month, the
entire inventory of spoiled units (both normal and abnormal spoilage) was sold at a price
lower than it had cost to produce them. How would this sale affect the reported net income
of the company?