Normal and abnormal spoilage in units. The following data, in physical units, describe a grinding process for January: Work in process, beginning Started during current period To account for 19,300 145,400 164,700 Spoiled units Good units completed and transferred out Work in process, ending Accounted for 12,000 128,000 164,700 Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection.
Normal and abnormal spoilage in units. The following data, in physical units, describe a grinding process for January: Work in process, beginning Started during current period To account for 19,300 145,400 164,700 Spoiled units Good units completed and transferred out Work in process, ending Accounted for 12,000 128,000 164,700 Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 7E: The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units...
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Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer.
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