spoiled work.the loss associated with spoiled good may be treated as part of the cost of the job or department that produced the spoiled units,or the loss may be charged to factory overhead and allocated among all jobs or departments.generally,factory overhead is charged unless the loss results from a special order and the spoilage is due to the type of work required on that particular order.in both cases,the spoiled goods are recorded in spoiled goods inventory at the expected sales price.