Refer to the information in 18-35.
Superchip specializes in the manufacture of microchips for aircraft. Direct materials are added at the start of the production process.
Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Normally, the spoiled units are 15% of the good units transferred out. Spoiled units are disposed of at zero net disposal price.
REQUIRED
Repeat question 1 from Problem 18-35 using the FIFO method of process costing.