Exercise 6-44 Name:
Insert your answers in the gray-shaded cells. If an answer is incorrect,
an asterisk will appear.
Pounds started 120,000
Maximum normal spoilage percentage 8%
Maximum normal spoilage allowed 9,600
Units Material Conversion
Beginning inventory 36,000
Pounds started 120,000
Pounds to account for 156,000
Beginning WIP inventory 36,000 – 19,800
Started & completed 90,000 90,000 90,000
Ending WIP inventory 21,600 21,600 3,240
Normal spoilage 8,400 – –
Pounds accounted for (FIFO) 156,000 111,600 113,040
Total Material Conversion
Beginning inventory cost 24,800$
Current costs 72,972 39,060$ 33,912$
Total costs 97,772$
Divide by EUP 111,600 113,040
Cost per EUP 0.65$ 0.35$ 0.30$
Cost Assignment
Transferred out:
Beginning WIP inventory cost 24,800$
Conversion cost to complete 5,940
Total cost of beginning inventory 30,740$
Started & completed 58,500 89,240$
Ending WIP inventory:
Material 7,560$
Conversion 972 8,532
Total cost accounted for 97,772$
Solution