Consider the Following Data for a Cooking Department for the Month

question 163

Essay

Consider the following data for a cooking department for the month of February:
*Direct material,100% complete; conversion costs,25% complete
~Direct material,100% complete; conversion costs,75% complete
Inspection occurs when production is 100 percent completed.Normal spoilage is 11 percent of good units completed and transferred out during the current period.
The following cost data are available:
Required: Prepare a detailed cost of production report.Use the FIFO method.Distinguish between normal and abnormal spoilage.

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