In their first year of operations, Company X completed 100000 units

costing $600000, before spoilage allocation.

The following information is available for the same period:

• 50000 units were sold
• 10000 units were 50% complete at the end of the year, at a cost of $80000

• all units are inspected at the end of the production process
• normal spoilage rate is 3.00%
• normal spoilage cost incurred was $23831
• abnormal spoilage cost incurred was $51756

Compute the portion of total spoilage costs that should be charged

against revenue in the period under analysis.