Q I InhemationalBusineszc... Homgmn's Cost Amun... x 18-44 JOB COSTING, CLASSIFYING SPOILAGE, ETHICS. Flextron Company is a contract manufacturer for a variety of pharmaceutical and overthe-counter products. It has a reputation for operational excellence and boasts a normal spoilage rate of 2% of normal input. Normal spoilage is recognized during the budgeting process and is classied as a component of manufacturing overhead when determining the overhead ratet L04 Lynn Sanger, one of Flextron's quality control managers, obtains the following information for Job No. M102, an order from a consumer products company. The order was completed recently, just before the close of Flextron's fiscal year. The units will be delivered early in the next accounting period. A total of 128,500 units were started, and 6,000 spoiled units were rejected at final inspection, yielding 122,500 good units. Spoiled units were sold at $4 per unit. Sanger indicates that all spoilage was related to this specic job. The total costs for all 128,500 units ofjob No. M102 follow. The job has been completed, but the costs are yet to be transferred to Finished Goods. 766 [I] WPg.749. Q I InhemationalBusineszC... Horngmn'scostAcooun... >