In its June production, Gorkei Co. incurred $30,000 normal spoilage and $40,000 abnormal spoilage. How would Gorkei Co. account for spoilage costs? (Choose one.)

(1) Inventoriable cost of $30,000 and period expense of $40,000.

(2) Period expense of $30,000 and inventoriable cost of $40,000.

(3) Inventoriable cost of $70,000.

(4) Period cost of $70,000.