(EUP computation; normal and abnormal loss; cost per EUP; FIFO) Luminations uses a FIFO process costing system to account for its candle production process. Wax occasionally forms imperfectly in molds and, thus, spoilage is viewed as continuous. The accepted quality level is 92 percent of the pounds of wax placed in production. All wax is entered at the beginning of the process. July 1996 data follow:

a. Prepare the production data segment of Luminations’ cost of production report for July 1996.

b. Compute the cost per equivalent unit for each cost component.

c. Assign July costs to the appropriate units.LO1

Beginning inventory (100% complete as to material; 30% complete as to conversion) Started during month Transferred (315,000 candles; there are 10 wax candles obtained from a pound of wax) Ending inventory 100% complete as to material; 20% complete as to conversion) Loss 9,000 pounds 30,000 pounds 31,500 pounds 5,400 pounds ? pounds