What is the abnormal spoilage in units during the year? *

1 point

An entity is employing process costing regarding its production cycle

Conversion costs are added uniformly at during the production process while direct materials are added 20% at the start of production process, 45% at the middle of the production process and the remainder at the end of production process

The entity is conducting inspection when the production process is at 45% of conversion cost. The production data of the entity during the year is presented below

Beginning Work in Process Inventory conversion costs) 10,000 units (40% incomplete as to conversion costs

Units started during the year 40,000 units

Ending Work in Process Inventory 5,000 units (80% complete as to conversion costs) Units completed during the period 38,000 units

Additional notes are provided

Normal Spoilage is 10% of units started during the year

7,000 units

4,000 units

3,000 units

2,000 units