A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information for the month is as follows: Work in process: Conversion (% of completion in WIP): Costs of Materials in WIP: Costs of Conversion in WIP: Beginning of Month 4,000 units 50% $ 81,000 $ 93,000 End of Month 3,000 units 40% ? ? During the month: Units started during the month: Costs incurred for Materials: Costs incurred for Conversion: Total Spoiled Units detected: 32,100 units $300,000 $ 270,000 1,700 units Other Income Statement Information: Sales: $920,000 Admin expenses $200,000 Inspection occurs when units are 60% converted, and inspection determines if the units are acceptable or spoiled. Normal Spoilage is based on 5% of units started. 80% of direct materials is added at the beginning of the process, and the remaining 20% of direct materials (for packaging) is 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 inventory is based on modified FIFO, Part B: Calculate the value of ending WIP, and prepare an Income Statement for the month assuming that inventory is based on Weighted Average