ECONOMICS

Detailed explanation-1: -While normal spoilage is included as a portion of cost of goods sold, abnormal spoilage will be reflected as an expense as it is incurred.

Detailed explanation-2: -The Equivalent unit of production of the WIP is the number of units multiplied by the completion rate or completion percentage. As such, the EUP for the work in process is 2, 000 x 50% = 1, 000 units. The total EUP then is 11, 000 units.

Detailed explanation-3: -Explanation: Costs of abnormal spoilage are not considered inventoriable and are not written off as a period expense. But it is true for normal spoilage.

Detailed explanation-4: -The equivalent units of production (EUP) are used to measure the level of production work done on partially completed units at the end of the period. This measurement is done to express the total number of completed units.