(Appendix; normal and abnormal spoilage; FIFO; advanced) Robbin Darrell Company produces door pulls that are inspected at the end of production. Spoilage may occur because the door pull is improperly stamped or molded. Any spoilage in excess of 3 percent of the completed good units is consid¬ ered abnormal. Material is added at the start of production. Labor and over¬ head are incurred evenly throughout production.

The company’s May 2006 production and cost data follow:

Calculate the equivalent units schedule, prepare a FIFO cost of production report, and assign all costs.LO1.

Transcribed Image Text:

Beginning inventory (50% complete) Units started Good units completed Ending inventory (1/3 complete) Material Beginning inventory $ 6,400 Current period 74,400 Total $80,800 5,600 74,400 70,000 7,500 Conversion $ 1,232 31,768 $33,000 Total $ 7,632 106,168 $113,800