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Tidy Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process and conversion costs are incurred

Tidy Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process and conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the process and spoiled units generally constitute 4% of the good units. 

Data provided for February are as follows:

WIP, beginning inventory February 1

25,000 units

   Direct materials (100% complete)


   Conversion costs (50% complete)




Started during February

82,000 units

Completed and transferred out

81,000 units



WIP, ending inventory February 28

15,000 units

   Direct materials (100% complete)


   Conversion costs (25% complete)




Costs:


   WIP, beginning inventory:


       Direct materials

$150,000

       Conversion costs

44,000

   Direct materials added

209,916

   Conversion costs added

109,893

What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing?

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