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Business, 22.12.2020 23:10 pinolena64
Verer Custom Carpentry manufactures chairs 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 4% of the good units. Data provided for March 2017 are as follows: WIP, beginning inventory 3/1/2017 32,700 units Direct materials (100% complete) Conversion costs (80% complete) Started during March 70,000 units Completed and transferred out 80,200 units WIP, ending inventory 3/31/2017 18,600 units Direct materials (100% complete) Conversion costs (70% complete) Costs: WIP, beginning inventory: Direct materials $70,000 Conversion costs 40,400 Direct materials added 106,000 Conversion costs added 128,160 What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing
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Verer Custom Carpentry manufactures chairs in its Processing Department. Direct materials are includ...
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