Recognition of loss from spoilage. Roku Electronics manufactures universal power adapters at its Desert Sands plant. The company provides you with the following information regarding operations for
April 2014:
Total power adapters manufactured 10,000
Adapters rejected as spoiled units 375
Total manufacturing cost $400,000
Assume the spoiled units have no disposal value.
1. What is the unit cost of making the 10,000 universal power adapters?
2. What is the total cost of the 375 spoiled units?
3. If the spoilage is considered normal, what is the increase in the unit cost of good adapters manufactured as a result of the spoilage?
4. If the spoilage is considered abnormal, prepare the journal entries for the spoilage incurred.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.