Normal spoilage should be included in your computation of manufacturing costs, so it is part of the WIP cost.
It is added to the goods completed and transferred out.
ANOTHER EXAMPLE
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Michael Henry
Controller
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Original Message:
Sent: 04-12-2021 08:41 AM
From: Hossam Mohammed Atta Ahmed
Subject: EUP and normal spoilage question
Hello guys,
I'm trying to understand if I have a notmal spoilage , should I take it in consideration when I calculate the ending wip units or completed units ? or just I ignore it? Or it depends on fifo or wighted average method ?