CMA Ltd accumulates costs for its single product using first in first out process costing. Direct material is added at the beginning of the production process, and conversion occurs uniformly throughout the process. All spoilage is detected at the quality inspection point, which occurs after production is 25 per cent complete. CMA uses a FIFO process costing approach to determine the cost of its products. For the purposes of the report ALL SPOILAGE IS CONDSIDERED TO BE NORMAL A partially completed production report for April follows:

Production report, April Percentage of completion with Physical units respect to conversion Work in process, 1 April 100,000 60% Units started during April 200,000 Total units to account for M Units completed and transferred out during April 220,000 Units spoiled during production 60,000 Work in process, 30 April 20,000 80% Total units accounted for M Direct Materials Conversion Total Work in Process, 1 April $53,500 $24,000 $82,500 Costs incurred during April 1 14,000 76,400 190,400 Total Costs to Account for $172,500 $100,400 $272,900