24. (EUP computation; normal and abnormal loss; cost per EUP; FIFO) CandleSticks uses a FIFO process costing system to account for its candle production process.

Wax occasionally forms imperfectly in molds and, thus, spoilage is viewed as continuous. The accepted quality level is good output of 92 percent of the pounds of wax placed in production. All wax is entered at the beginning of the process. March 2001 data follow:

Beginning inventory (30% complete as to conversion) 9,000 pounds Started during month 30,000 pounds Transferred 31,500 pounds

(315,000 candles; 10 wax candles are obtained from a pound of wax)

Ending inventory (20% complete as to conversion) 5,400 pounds Loss ? pounds The following costs are associated with March production:

Beginning inventory:
Material $3,600 Conversion 2,700 $ 6,300 Current period:
Material $9,207 Conversion 8,964 18,171 Total costs $24,471

a. Prepare the production data segment of CandleSticks’ cost of production report for March 2001.

b. Compute the cost per equivalent unit for each cost component.

c. Assign March costs to the appropriate units.