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Schmidt Company Manufactures a Single Product Required:Find Ending WIP Inventory,abnormal Loss,and COGM

Question 9

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Schmidt Company manufactures a single product.All material is added at the beginning of the process.

Costs  Material Conversion   Total
 Beginning inventory  $ 30,000  $ 3,600  $ 33,600
 Current period   885,120   335,088   1,220,208
 Total costs  $915,120  $338,688  $1,253,808

 UNITS  Beginning inventory (30% complete-conversion) 6,000units Started 180,000units Completed 152,000units Ending inventory (70% complete-conversion) 20,000units Normal spoilage 4,800units\begin{array}{l}\text { UNITS }\\\begin{array}{ll}\text { Beginning inventory (30\% complete-conversion) } & 6,000 &units\\\text { Started } & 180,000&units \\\text { Completed } & 152,000&units \\\text { Ending inventory (70\% complete-conversion) } & 20,000 &units\\\text { Normal spoilage } & 4,800 &units\end{array}\end{array} Required:Find ending WIP inventory,abnormal loss,and COGM.Assume that,for conversion costs,abnormal shrinkage is 60 percent.

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