Kansas Valve Company makes pressure valves for cold liquid substances. Data for May for the first process center, Machining are presented below: Beginning work-in-process inventory is 6,000 units with all materials and 60 percent conversion. Beginning inventory costs include $9,000 for materials, $4,500 for labor, and $3,600 for applied overhead. There were 30,000 units started in May. Material costs for May were $50,400. May labor costs were $32,619. Required: Prepare a cost of production report in good form for the Machining process center for May. Project Case 2 Applied manufacturing overhead was $25,896. Ending work-in-process was 10,000 units with all materials and 25 percent conversion. FIFO inventory method is used. Mercury Company is employing process costing regarding its production cycle. Conversion costs are added uniformly at during the production process while direct materials are added 20% at the start of production, 45% at the middle of the production process and the remainder at the end of the production process. Mercury Company is conduction inspection when the production process is at 45% of the conversion cost. The production data of the entry during the year is as follows: 1. 2. 3. Beginning work in process inventory (40% incomplete as to conversion costs) Units started during the year Ending work in process inventory (80% complete as to conversion costs) Units completed during the period Normal spoilage is 10% of units started during the year 10.000 units 40.000 5.000 38.000 Required: What is the abnormal spoilage in units during the year? What is the equivalent unit of production for direct materials and for conversion cost under the average costing? What is the equivalent unit of production for direct materials and for conversion cost under the FIFO costing? units units units