Question

In: Accounting

Monthly information is as follows:                   Beginning of month       End of month          

Monthly information is as follows:                   Beginning of month       End of month

          Work in process Inventory:                            1,000 units          4,000 units

          Conversion: degree of completion in WIP           60%                     40%

          Direct Material Costs in Beginning WIP       $ 8,100                          ?

          Conversion Costs in Beginning WIP              $11,300                       ?

During the month:      Costs incurred for Direct Materials                $27,975  

Costs incurred for Conversion                        $27,235

At month end:             2,860 good units were completed, 140 units were spoiled

Direct Materials:         90% are added at the beginning of the process, the rest at 90% conversion

Conversion costs:       Added evenly during the process.

Spoiled Units:             Detected at 100% conversion. Normal Spoilage = 2% of units started

Required:

  1. Using FIFO, calculate:
    1. Ending WIP
    2. Cost of Goods Manufactured
    3. Spoilage expense

Solutions

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SOLUTION:-

Workings:

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ekkarill92 answered 1 year ago
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