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A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information for the month is as follows: During
A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information for the
month is as follows:
During the month:
Units started during the month: units
Costs incurred for Materials: $
Costs incurred for Conversion: $
Total Spoiled Units detected: units
Other Income Statement Information:
Sales:
$
Admin expenses
$
Inspection occurs when units are converted, and inspection determines if the units are "acceptable" or "spoiled".
Normal Spoilage is based on of units started.
of direct materials is added at the beginning of the process, and of direct materials for packaging are added
immediately after inspection.
There were no finished goods or raw material inventories at any point of the process.
Required:
Part A: Calculate the value of ending WIP, and prepare an Income Statement for the month assuming that process costing
is based on modified FIFO,
Part B: Calculate the value of ending WIP, and prepare an Income Statement for the month assuming that process costing
is based on Weighted Average.
you can omit the company name and period from the income statement
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