For the retail inventory method, normal spoilage of inventory is treated as:

Multiple Choice

Deducted in the cost column before calculating the cost$-$to$-$retail ratio.

Deducted in the cost column after calculating the cost$-$to$-$retail ratio.

Deducted in the retail column after calculating the cost$-$to$-$retail ratio.

Deducted in the retail column before calculating the cost$-$to$-$retail ratio.