Room-Builders makes modular cabins for Cruise Ships. Each cabin is identical.(Modular means that the cabins are like lego blocks)

Monthly information is as follows: Beginning of month End of month

Work in process Inventory:100 units50 units

Conversion: degree of completion in WIP 60%70%

Direct Material Costs in Beginning WIP$ 830,000?

Conversion Costs in Beginning WIP$1,240,000?

During the month: Costs incurred for Direct Materials $29,975,000

Costs incurred for Conversion $26,235,000

At month end: 600 good units were completed, 8 units were spoiled

Direct Materials: 90% are added at the beginning of the process, the rest at Final Inspection

Conversion costs: Added evenly during the process.

Spoiled Units:Detected at Final Inspection (100% conversion)

Normal Spoilage = 1% of units started

Required:

A.Using FIFO, calculate:

i.Ending WIP

ii.Cost of Goods Manufactured

iii.Spoilage expense