Consider the following data for a cooking department for the month of January: 

Physical 

Units Work in process, beginning inventory* 11,000 

Started during current period 74,000 

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 

Good units completed 61,000 

Spoiled units 8,000 

Work in process, ending inventory** 16,000 

Accounted for 85,000 

*BWIP:  Direct material, 100% complete; conversion costs, 25% complete 

**EWIP: Direct material, 100% complete; conversion costs, 75% complete Inspection occurs when production is 100 percent completed. 

Normal spoilage is 11 percent of good units completed and transferred out during the current period. 

The following cost data are available: Work in process, beginning inventory: 

Direct material $220,000 

Conversion costs 30,000 $ 250,000 

Costs added during current period: 

Direct material 1,480,000 Conversion costs 942,000 

Costs to account for $2,672,000 

Required: 

Use the FIFO method and answer the following questions: 

1. How much is the cost of completed units? 

2. How much is the cost of normal spoilage? 

3. How much is the cost of abnormal spoilage?

Answer rating: 100% (QA)

Normal Sp 11 x 61000 6710 ... View the full answer