MAAssignment 1-Due in L6 QUESTION 1 Zara Ltd operates under the first-in-first-out method of process costing. It has two production departments, namely Assembly and Finishing. The following information relates to the production data of the Finishing department for May, 2016: Beginning work-in-process inventories: Conversion costs Costs incurred by Assembly department $810,000 Direct material "A" $1,440,000 Direct material "B" $810,000 $450,000 Costs added during September: Costs incurred by Assembly department $6,560,000 Conversion costs $3,990,000 Direct material "A" $3,690,000 Direct material "B" $1,850,000 Physical units: Beginning work-in-process inventories (90% complete) 18,000 Units transferred out 90,000 Ending work-in-process inventories (40% complete) 5,000 Units received from Assembly department 82,000 During May, two types of direct materials were added to the manufacturing process. Material "A" is added at the beginning of the production, while 40% of material "B" is added when the production process is 50% complete and the remaining of material "B" is added after inspection. Conversion costs are evenly added. Inspection takes place when the process is 80% complete. Normal spoilage is set at 5% of units inspected. Costs of normal spoilage will be absorbed by good output. 8050 + Required: a. Calculate the cost of goods manufactured in May for Finishing department. b. Calculate the cost of goods manufactured and prepare a journal entry to record the transfer of completed units to Finished Goods Inventory account