Certain amounts of spoilage and waste are normal in the production system and affect all jobs.

/in /by

(Accounting for losses; writing) Describe how the following occurrences should be accounted for based on the fact pattern presented:

a. Certain amounts of spoilage and waste are normal in the production system and affect all jobs.

b. A certain amount of spoilage occurs that is unique to a particular job. There is no disposal value for the spoiled units.

c. Because of a nonroutine malfunction in a production machine, a number of products in Work in Process Inventory were ruined. The quantity of work lost is assumed to be abnormal. There is some salvage value for the spoiled units.

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