Recognition of loss from spoilage. Spheres Toys manufactures globes at its San Fernando facility. The company provides you with the following information regarding operations for April 2017: Total globes manufactured 20,000 Globes rejected as spoiled units 750 Total manufacturing cost $800,000 Assume the spoiled units have no disposal value. Q. If the spoilage is considered normal, what is the increase in the unit cost of good globes manufactured as a result of the spoilage?

Principles of Cost Accounting
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ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
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 Recognition of loss from spoilage. Spheres Toys manufactures globes at its San Fernando facility. The company provides you with the following information regarding operations for April 2017:


Total globes manufactured 20,000

Globes rejected as spoiled units 750

Total manufacturing cost $800,000


Assume the spoiled units have no disposal value.

Q. If the spoilage is considered normal, what is the increase in the unit cost of good globes manufactured as a result of the spoilage?

 

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