The following data, in physical units, describe a grinding process for January:Regardless of the targeted normal spoilage, abnormal spoilage is (non-recuring and avoidable / non-recuring and non-avoidable / recurring and avoidable / recurring and non-avoidable) The targeted normal spoilage rate (is / is not) subject to change. Many companies have reduced their spoilage to almost zero, which would (realize all / not realize / realize a small portion of the) potential saving.

The following data, in physical units, describe a grinding process for January: E (Click the icon to view the January data.) Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection. Read the requirements Requirement 1. Compute the normal and abnormal spoilage in units. Normal spoilage (in units) Abnormal spoilage (in units) Requirement 2. Assume that the equivalent-unit cost of a spoiled unit is $11. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Abnormal spoilage Normal spoilage Potential savings Comment on your answer. - - Data table 18,900 152,000 170,900 Work in process, beginning Started during current period To account for Spoiled units Good units completed and transferred out Work in process, ending Accounted for 12,300 134,000 24,600 170,900 Print Done Requirements 1. Compute the normal and abnormal spoilage in units. 2. Assume that the equivalent-unit cost of a spoiled unit is $11. Compute the amount of potential savings if all spoilage were eliminated, assuming that all other costs would be unaffected. Comment on your answer. Print Done subject to change. Many companies Regardless of the targeted normal spoilage, abnormal spoilage is have reduced their spoilage to almost zero, which would The targeted normal spoilage rate potential savings