QUESTION 1(a): Weighted Average (8 Marks) Spaces manufactures hardware facilitating particle transmission over the internet. Direct costs are added at the beginning of the process. Conversion costs are added evenly during the process. The following information is available for July 2019: conversion Costs $30,000 Physical Units Direct Material Work in Progress, July 1 12,000 $22,000 Degree of completion: direct materials 100%, conversion costs 30% Units started in July 48,000 Costs added during July $60,000 Completed and transferred out during July 50,000 $100,000 Ending WIP, July 31, of 9,000 units, was 100% complete for direct materials, and 25% complete for conversion costs. Spoilage is anticipated to be 1% of completed units transferred out. Required: QUESTION 1(c): Standard Costing (8 Marks) Spaces is considering switching to standard costing and are curious what the result would have been if Direct Materials were costed out at $1.35 and Conversion Costs at $2.55. Required: Using standard costing: a) Assign costs to units completed and transferred out to finished goods inventory at July 31, 2019. (5 marks) b) Assign costs to abnormal spoilage for the month of July. (1 mark) c) Assign costs to ending work in progress at July 31, 2019. (1 mark) d) Quantify the variance and indicate if it is Favorable or Unfavorable? (1 mark) The variance for direct materials is The variance for conversion costs is QUESTION 1(a): Weighted Average (8 Marks) Spaces manufactures hardware facilitating particle transmission over the internet. Direct costs are added at the beginning of the process. Conversion costs are added evenly during the process. The following information is available for July 2019: conversion Costs $30,000 Physical Units Direct Material Work in Progress, July 1 12,000 $22,000 Degree of completion: direct materials 100%, conversion costs 30% Units started in July 48,000 Costs added during July $60,000 Completed and transferred out during July 50,000 $100,000 Ending WIP, July 31, of 9,000 units, was 100% complete for direct materials, and 25% complete for conversion costs. Spoilage is anticipated to be 1% of completed units transferred out. Required: QUESTION 1(c): Standard Costing (8 Marks) Spaces is considering switching to standard costing and are curious what the result would have been if Direct Materials were costed out at $1.35 and Conversion Costs at $2.55. Required: Using standard costing: a) Assign costs to units completed and transferred out to finished goods inventory at July 31, 2019. (5 marks) b) Assign costs to abnormal spoilage for the month of July. (1 mark) c) Assign costs to ending work in progress at July 31, 2019. (1 mark) d) Quantify the variance and indicate if it is Favorable or Unfavorable? (1 mark) The variance for direct materials is The variance for conversion costs is