(Appendix; El IP computation; normal loss; cost per EUP; FIFO; advanced)

Rodin Inc. produces small plastic toys. As the raw material is heated, shrink¬ age occurs. Management believes that shrinkage of less than 8 percent is normal. All direct material is entered at the beginning of the process. March 2006 data follow:LO1.

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Beginning inventory (30% complete as to conversion) Started during month Transferred 18,000 pounds 60,000 pounds 63,000 pounds Ending inventory (20% complete as to conversion) Loss 10,800 pounds ? pounds