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The following data, in physical units, describe a grinding process for January: (Click the icon to view the January data.) Requirement . Compute the
The following data, in physical units, describe a grinding process for January: (Click the icon to view the January data.) Requirement . Compute the normal and abnormal spollage in units. Normal spoilage (in units) Abnormal spoilage (in units) Data table Work in process, beginning Started during current period To account for Spoiled units Good units completed and transferred out Work in process, ending Accounted for Print Done 18.800 181,100 199.900 12,300 162.500 25,100 199,900 ***** Inspection occurs at the 100 % completion stage. Normal spoilage is 4% of the good units passing inspection. Read the requirements. Requirements 1. Compute the normal and abnormal spoilage in units. 2. Assume that the equivalent-unit cost of a spoiled unit is $8. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer. Print Done X
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