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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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