Monthly information is as follows: Beginning of month End of month

Work in process Inventory: 1,000 units 4,000 units

Conversion: degree of completion in WIP 60% 40%

Direct Material Costs in Beginning WIP $ 8,100 ?

Conversion Costs in Beginning WIP $11,300 ?

During the month: Costs incurred for Direct Materials $27,975

Costs incurred for Conversion $27,235

At month end: 2,860 good units were completed, 140 units were spoiled

Direct Materials: 90% are added at the beginning of the process, the rest at 90% conversion

Conversion costs: Added evenly during the process.

Spoiled Units: Detected at 100% conversion. Normal Spoilage = 2% of units started

Required:

1. Using FIFO, calculate:
   1. Ending WIP
   2. Cost of Goods Manufactured
   3. Spoilage expense