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1. Compute the normal and abnormal spoilage in units. 2. Assume that the equivalent-unit cost...

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Accounting

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.

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CoursHeroTranscribedText: 1 8-20 Normal and abnormal spoilage in units. The following data, in physical units, describe a grinding process for Januarv: Work in process, beginning 19.300 Started during current period 145,400 To account for 164,700 Spoiled units 12,000 Good units completed and transferred out 128,000 Work in process, ending 24,700 Accounted for 164,700 Inspection occurs atthe 100% completion stage. Normal spoilage is 5% of the good units passing inspection. 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

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