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15 Marks (approx. 27 minutes) Greencorn Ltd. manufactures toys using a continuous production process that flows through two departments: Forming and Finishing. The company accounts for its process using the First In First Out (FIFO) method of Process Costing. In the Forming Department, Direct Materials are added at the start of the process, and Conversion costs are added evenly during the process. Inspection in this department occurs at the end of the process when the toys are complete For the Forming Department spoilage of 4.0% of Good Units Completed is considered normal. Any amount of spoilage greater than that should be considered abnormal. Additional information follows: Forming Department Physical Units Direct Materials Conversion Work in Process October 1 500 $ 550 S 2.700 Degree of Completion in beginning WIP 100% 60% Units Started in January 23,000 Good Units Transferred Out 20.000 Work In Process October 31 2.500 Degree of Completion in Ending WIP 100% 80% Costs added in October $ 28,750 S 340,500 Required: Show your work and take all calculations to four significant digits 1. Determine: a. Total Costs of Good Units Completed and Transferred Out, b. The Dollar Amount of Abnormal Spoilage, c. The Dollar Amount of Work in Process Inventory at October 31 You may find it easiest to Prepare a Cost of Production Report for the month of October