Refer to the information provided in Problem 6.47.

Physical                                                 Units

Beginning WIP (25% complete) ....... 11,000

Started during January ...........74, 0000

Total to account for ............ 85,000

Good units completed and transferred out during current period:

From beginning work in process ......11,000

Started and completed ...........50,000

Spoiled units ............. 8,000

Ending WIP (75% complete) .......16,000

Total accounted for ...........85,000

Costs

Beginning WIP:

Direct materials .......... $ 220,000

Conversion costs ......... 30,000

Total beginning WIP ........ 250,000

Costs added during current period:

Direct materials .......... 1,480,000

Conversion costs ........ 942,000

Costs to account for .......$2,672,000

REQUIRED

Prepare a material flow cost report using the FIFO method. Assume that the production process wastes 10% of all raw materials before taking into account spoilage. For simplicity, do not adjust the costs for beginning work in process.