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ABC corporation has on January 1, 3,000 units were in process-- 80% complete in regards to materials and 70% complete in regards to conversion costs--at
ABC corporation has on January 1, 3,000 units were in process-- 80% complete in regards to materials and 70% complete in regards to conversion costs--at a cost of materials of $38,120 and a cost of conversion costs of $40,950; during January 19,000 units were started; during January materials costs of $282,000 and conversion costs of $378,000 were added to production; during January 20,000 units were completed; on January 31, 2,000 units were in process--60% complete in regards to materials and 50% complete in regards to conversion costs; 500 of the completed units were spoiled; company-wide standards state that a spoilage rate of 2% of completed units is considered to be normal; spoilage is detected at the end of the manufacturing process; it is assumed that the spoiled units came entirely from the units started and completed during January.
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