A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information for the month is as follows: Beginning of Month Work in process: 20,000 units Conversion (% of completion in WIP): 35% Costs of Materials in WIP: $ 81,000 Costs of Conversion in WIP: $115,000 End of Month 8,000 units 65% ? ? During the month: Units started during the month: Costs incurred for Materials: Costs incurred for Conversion: Total Spoiled Units detected: 69,000 units $300,000 $270,000 4,398 units Other Income Statement Information: Sales: $920,000 Admin expenses $200,000 92% of direct materials is added at the beginning of the process, and the remaining 8% of direct materials (for packaging) is added immediately after inspection. Inspection occurs when units are 75% converted, and inspection determines if the units are "acceptable or spoiled". Normal Spoilage is based on 6% of units started. There were no finished goods or raw material inventories at any point of the process. Required: Part A: Prepare an Income Statement for the month and show the value of ending inventory assuming that inventory is based on modified FIFO, Part B: Prepare an Income Statement for the month and show the value of ending inventory, assuming that inventory is based on Weighted Average. A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information for the month is as follows: Beginning of Month Work in process: 20,000 units Conversion (% of completion in WIP): 35% Costs of Materials in WIP: $ 81,000 Costs of Conversion in WIP: $115,000 End of Month 8,000 units 65% ? ? During the month: Units started during the month: Costs incurred for Materials: Costs incurred for Conversion: Total Spoiled Units detected: 69,000 units $300,000 $270,000 4,398 units Other Income Statement Information: Sales: $920,000 Admin expenses $200,000 92% of direct materials is added at the beginning of the process, and the remaining 8% of direct materials (for packaging) is added immediately after inspection. Inspection occurs when units are 75% converted, and inspection determines if the units are "acceptable or spoiled". Normal Spoilage is based on 6% of units started. There were no finished goods or raw material inventories at any point of the process. Required: Part A: Prepare an Income Statement for the month and show the value of ending inventory assuming that inventory is based on modified FIFO, Part B: Prepare an Income Statement for the month and show the value of ending inventory, assuming that inventory is based on Weighted Average