BB Costs of normal spoilage are usually viewed as a part of the costs of good units manufactured. BB Normal spoilage rates should be computed using the total good units completed as the base. Normal Spoilage Normal spoilage is calculated as a percentage of the good units passing the inspection point. BB Abnormal spoilage is regarded as avoidable and controllable. BB Abnormal spoilage costs are written off as losses.
All spoilage occurs at the inspection point.
Normal spoilage is a percent of good units passing the inspection point. Process Costing and Spoilage Summarize the flow of physical units of output. Compute output in terms of equivalent units. Compute equivalent unit costs. Scrap Common to all Jobs, recognised at TOS Scrap returned to store - no journal entry at this point.