Exercise 6-46 Name:
Insert your answers in the gray-shaded cells of columns E, G and I. If an
answer is incorrect, an asterisk will appear.
a. Units Material Conversion
Beginning inventory 40,000
Pounds started 425,000
Pounds to account for 465,000
Beginning inventory completed 40,000 – 6,000
Started & completed 405,000 405,000 405,000
Ending inventory 10,000 10,000 2,500
Normal spoilage 2,000 – –
Abnormal spoilage 8,000 8,000 5,600
EUP (FIFO) 465,000 423,000 419,100
b. Ending inventory:
Material 800$
Conversion 375
Total cost 1,175$
c. Abnormal spoilage:
Material 640$
Conversion 840
Total cost 1,480$
Solution