Exercise IV: Set A- Weighted average costing method Set B-FIFO costing method EarthFriendly Corporation manufactures bags made of indigenous materials. Direct materials for this product are added at the beginning of the production cycle. Conversion costs are added evenly during production. Some units of this product are spoiled as a result of defects which are detectible only upon inspection of finished units. Normally, spoiled units are 10% of the finished good units. Units and costs data for September 20xx are the following Units. Work in Process, beginning inventory Direct Materials - 100% complete 500 Conversion costs - 75% complete Started during September 4,500 Completed and transferred out, September Work in Process, ending inventory 4,250 250 Direct materials 100% complete Conversion costs - 50% complete Costs: Work in Process, beginning inventory Direct Materials Conversion costs Direct materials added, September Conversion costs added, September Total costs to account for P30,000 15,000 P 45,000 270,000 180,000 P495,000 Required: Prepare cost of production report and appropriate accounting entries