Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 5% of the good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 Direct materials (100% complete) Conversion costs (55% complete) 51,300 units Started during February Completed and transferred out 170,000 units 180,900 units 26,100 units WIP, ending inventory 2/28/2020 Direct materials (100% complete) Conversion costs (20% complete) Costs: WIP, beginning inventory Direct materials Conversion costs Direct materials added Conversion costs added $280, 200 80,300 409,000 264,600 What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing? (Round any cost per unit calculations to the nearest cent.)

Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 5% of the good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 Direct materials (100% complete) Conversion costs (55% complete) 51,300 units Started during February Completed and transferred out 170,000 units 180,900 units 26,100 units WIP, ending inventory 2/28/2020 Direct materials (100% complete) Conversion costs (20% complete) Costs: WIP, beginning inventory Direct materials Conversion costs Direct materials added Conversion costs added $280, 200 80,300 409,000 264,600 What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing? (Round any cost per unit calculations to the nearest cent.)

Name: Samantha's Office Supplies manufactures desk organizers in its Proces
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Description: Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs areincurred evenly throug

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....

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Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are completed. After inspection, some units are spoiled due to undetectable material defects. Normal spoiled units generally constitute 4% of the good units. Data provided for February 2020 are as follows:WIP, beginning inventory 2/1/2020 51,000 units Direct materials (100% complete) Conversion costs (60% complete)Started during February 170,500 unitsCompleted and transferred out 180,100 unitsWIP, ending inventory 2/28/2020 26,600 units Direct materials (100% complete) Conversion costs (25% complete)Costs: WIP, beginning inventory: Direct materials…
Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion c incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 Direct materials (100% complete) Conversion costs (50% complete) 51,300 units Started during February Completed and transferred out 170,700 units 180,700 units WIP, ending inventory 2/28/2020 Direct materials (100% complete) Conversion costs (30% complete) 26,500 units Costs: WIP, beginning inventory: Direct materials $280,000 Conversion costs 80,800 408,800 264,800 Direct materials added Conversion costs added What are the direct material and conversion…
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