1. Is the spoilage a normal or an abnormal spoilage?  - Normal or Abnormal

2. What is the EUP for materials?

3. How many units were transferred out?

4. What is the EUP for conversion costs?

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Diligent Manufacturing produces product 2AB and uses the FIFO method in its EUP computations. All direct material is entered at the beginning of the process. Some shrinkage occurs during the production process, but any shrinkage of less than 3 percent to be normal. October 2021 data are as follows: Beginning WIP inventory (60% complete as to material; 80% complete as to conversion) Started during October Ending WIP inventory (40% complete as to material; 20% complete as to conversion) 20,000 pounds 180,000 pounds 15,000 pounds FS During the month 4,800 gallons were spoiled. Diligent Manufacturing produces product 2AB and uses the FIFO method in its EUP computations. All direct material is entered at the beginning of the process. Some shrinkage occurs during the production process, but any shrinkage of less than 3 percent to be normal. October 2021 data are as follows: Beginning WIP inventory (60% complete as to material; 80% complete as to conversion) Started during October Ending WIP inventory (40% complete as to material; 20% complete as to conversion) 20,000 pounds 180,000 pounds 15,000 pounds FS During the month 4,800 gallons were spoiled.

Answer rating: 100% (QA)

ANSWER 1 Abnormal Abnormal spoilage is normally referred to as unexpected spoilage Although these spoilages do not have a standard computation method these are treated as usage and thus should be trea... View the full answer