Required:

a) Compute the units of normal and abnormal spoilage for July 2019 in the finishing department.

b)

(i) Using FIFO and process costing, calculate the cost per equivalent unit of production for each of the relevant cost categories in RSs finishing department for July 2019 (round your costs per equivalent unit to 3 decimal place of a dollar)

(ii) The cost incurred for spoilage and WIP at the end of July 2019

(iii) The cost per brick manufactured in July 2019.

Rock Solid Company (RS) manufactures concrete bricks. RS uses process costing and FIFO to account for product costs. The manufacturing process takes place in two sequential departments. Bricks which are completed in the pouring department during a certain calendar month are transferred to the finishing department for the finishing department's production in the following month. The following cost data relate to June and July 2019: Finishing department (July 2019) $74,025 $124,362 Pouring department (June 2019) Direct material incurred $210,000 Conversion costs $204,000 Cost of goods completed $414,000# and transferred out Costs of goods transferred to finishing department * Costs of goods transferred to finished goods $?* # There was no beginning and ending work in process (WIP) in the pouring department in June and July 2019. All material and conversion costs are added evenly throughout the finishing process. Bricks are inspected at the 90% point in the finishing department. If a brick does not pass the inspection, it is discarded. At the end of the manufacturing process, 'good' bricks are transferred to the warehouse for storage. There were 2,000 bricks in WIP at the beginning of July 2019 in the finishing department. These bricks were 10% complete with respect to direct material and conversion costs. At the end of July 2019, there were 8,000 bricks in WIP and these bricks were 50% complete with respect to direct material and conversion costs. During July 2019, 200,000 bricks were started. At the end of July, 190,000 completed bricks were transferred to the warehouse. Normal spoilage is set at 3% of inspected bricks. The following table summarises the cost of WIP in finishing department at the beginning of July 2019: Direct material Transferred in costs Conversion costs Total Beginning WIP $75 $4,140 $126 $4,341