A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information

for the month is as follows:

Other Income Statement Information:

Inspection occurs when units are $60\%$ converted, and inspection determines if the units are "acceptable" or "spoiled".

"Spoiled" units are discarded. Normal Spoilage is $2\%$ of units started.

$80\%$ of direct materials is added at the beginning of the process, and $20\%$ of direct materials $($for packaging$)$ are added

at $98\%$ converted.

There were no finished goods or raw material inventories at any point of the process.

Required:

Part A: Calculate the value of ending WIP, and prepare an Income Statement for the month assuming that

process costing is based on modified FIFO,

Part B: Calculate the value of ending WIP, and prepare an Income Statement for the month assuming that

process costing is based on Weighted Average.