Compute the normal and abnormal spoilage in units

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Reference no: EM131255858

The following? data, in physical? units, describe a grinding process for? January:

Work in process, beginning 19,100

Started during current period 191,000

To account for 210,100

Spoiled units 12,200

Good units completed and transferred out 172,500

Work in process, ending 25,400

Accounted for 210,100

Inspection occurs at the 100% completion stage. Normal spoliage is 4% of the good units passing inspection.

Requirements:

1. Compute the normal and abnormal spoilage in units.

Normal spoilage ___ units

Abnormal spoilage ___ units

2. Assume that the equivalent-unit cost of a spoiled unit is $9. Compute the amount of potential savings if all spoilage were eliminated, assuming that all the other costs would be unaffected. Comment on your answer

Reference no: EM131255858

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