Reference no: EM132561791

Waliya Plastics, which makes casings for the iMac computer using plastic injection molding. In January 2012, Waliya incurs costs of $615,000 to produce 20,500 units. Of these 20,500 units, 20,000 are good units and 500 are spoiled units. Waliya has no beginning inventory and no ending inventory that month. Of the 500 spoiled units, 400 units are spoiled because the injection molding machines are unable to manufacture good casings 100% of the time. That is, these units are spoiled even though the machines were run carefully and efficiently. The remaining 100 units are spoiled because of machine breakdowns and operator errors.

Question 1: Based on above information, calculate

I). Manufacturing cost per unit?

II).Manufacturing cost per good unit?

III). Normal spoilage Cost?