Don’t provide incomplete /wrong/unclear format of answer. Question 3a) What do you mean by scrap? Will scrap increase cost per unit? Why or why not?b) Ginger Mechanicals applies process costing as it produces a single product in large volume. Theprocess line (partial) for Melting Department is given below:62,0003,0006,00058,000UnitsUnitsUnitsUnits0%20%30%40%50%70%80%100%DMDLIP 1IP 2ОНOther Information:At 20%, we have beginning inventory and at 70%, we have ending inventory. At 50%, a total of 66,000units were inspected for rework. 2% of the units inspected are considered as normal rework. At 80%,we have inspection point for spoilage. 1% of input is considered as normal spoilage. However, spoiledunits can be scrapped at $3 per unit.Costs per equivalent unit data are given below:MaterialLaborOverheadCost per equivalent unit$8$5$3Required:i) Compute equivalent units for normal rework and normal spoilage.ii) Compute cost of normal rework and show the shifting.iii) Compute cost of normal spoilage and show the shifting.

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Question 3 a) What do you mean by scrap? Will scrap increase cost per unit? Why or why not?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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