17 23 Carpentry manufactures chairs in its Processing Department Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit Conversion costs are incurred evenly throughout the production cycle Inspection takes place at 95 of the conversion process After inspection, some units are spoiled due to nondetectible material defects Spoiled units generally constitute 3 of the good units Malikhain uses FIFO method Data provided for March 2020 are as follows WIP, beginning inventory 3 1 2020 30,000 units Direct materials (100 complete) Conversion costs (89 5 complete) Started during March 80,000 units Completed and transferred out WIP, ending inventory 3 31 2020 Direct materials (100 complete) Conversion costs (75 complete) Costs 86,000 units 20,000 units WIP, beginning inventory Direct materials P 70,000 Conversion costs 40,000 Direct materials added 160,000 Conversion costs added 17 How many units are considered normal spoilage 120,000 18 How many units are considered abnormal spoilage 19 How much cost is associated with normal spoilage 20 How much cost is associated with abnormal spoilage 21 How much costs is allocated to the ending work in process inventory 22 How much cost is allocated to transferred out units 23 What is the journal entry to record the transfer of completed goods to finished goods

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17-23. Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single

17-23. Carpentry manufactures chairs in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place at 95% of the conversion process.. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 3% of the good units. Malikhain uses FIFO method. Data provided for March 2020 are as follows: WIP, beginning inventory 3/1/2020 30,000 units Direct materials (100% complete) Conversion costs (89.5% complete)

Started during March	80,000 units
Completed and transferred out WIP, ending inventory 3/31/2020 Direct materials (100% complete) Conversion costs (75% complete) Costs:	86,000 units 20,000 units

WIP, beginning inventory:

Direct materials	P 70,000
Conversion costs	40,000
Direct materials added	160,000
Conversion costs added 17. How many units are considered normal spoilage?	120,000

18. How many units are considered abnormal spoilage 19. How much cost is associated with normal spoilage? 20. How much cost is associated with abnormal spoilage? 21. How much costs is allocated to the ending work-in-process inventory? 22. How much cost is allocated to transferred out units? 23. What is the journal entry to record the transfer of completed goods to finished goods?