What is the abnormal spoilage in units during the year? * 1 point An entity...
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Accounting
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
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