"During the month Job A was completed. If Job A was for an order of 1,000 units. However, due to some faulty processing, a total of 1,100 units (including 100 spoiled units) was produced. The total cost incurred for Job A was $3,850.
Normal spoilage was set at 4% of good units produced."
With reference to the above question, do i take the total quantity as 1,000 or 1,100 units? Because if i take 1,100 as the total, then the normal spoilage is 44 instead of 40 using 4% as the standard in this question.
Any clarification is helpful. Thank you
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Process Costing
5y ago#1The question says that the normal spoilage is "4% of good units produced".
Although 1,100 units were produced, that included 100 spoiled units, and so only the remaining 1,000 were 'good units'.
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