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
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