Assume that 800 units were worked on during a period in which a total of 700 good units were completed. Normal spoilage consisted of 50 units; abnormal spoilage, 40 units. Total production costs were $3,600. The company accounts for abnormal spoilage separately on the income statement as a loss due to abnormal spoilage. Normal spoilage is not accounted for separately. What is the cost of the good units produced?

Assume that 800 units were worked on during a period in which a total of 700 good units were completed. Normal spoilage consisted of 50 units; abnormal spoilage, 40 units. Total production costs were $3,600. The company accounts for abnormal spoilage separately on the income statement as a loss due to abnormal spoilage. Normal spoilage is not accounted for separately. What is the cost of the good units produced?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter14: Quality And Environmental Cost Management

Section: Chapter Questions

Problem 27E: Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the...

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