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Titos Company produces kick plates, which are inspected at the end of production. Spoilage may...

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Question

Accounting

  1. Titos Company produces kick plates, which are inspected at the end of production. Spoilage may occur because the door pull is improperly stamped or molded. Any spoilage in excess of 5% of completed good units is considered abnormal. Direct materials are added at the start of production. Labor and overhead are incurred evenly throughout production.

The companys May production and cost data follow:

Beginning WIP Inventory (40% complete)

5,600

Units Started

74,400

Good Units completed

65,000

Ending WIP (25% complete)

7,500

Direct Materials

Conversion

Total
Direct Material Conversioin Total

Beginning Inventory

$6,400

$1,232

$7,632

Current period

74,400

31,768

106,168

Total

$80,800

$33,000

$113,800

Question 1
  1. What is the total dollar amount of the ending work in process under FIFO?
  1. What is the total cost per unit under FIFO?
  1. What is the cost of abnormal spoilage under FIFO
  1. What is the cost per unit for those units in the beginning work-in-process

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