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CoursHeroTranscribedText: A manufacturer uses process costing. It has one direct material cost pool and one conversion cost pool. Information for the month is as follows: Beginning of Month End of Month Work in process: 4,000 units 3,000 units Conversion (% of completion in WIP): 50% 40% Costs of Materials in WIP: 5 81,000 :? Costs of Conversion in WIP: S 93,000 :? During the month: Units started during the month: 32,100 Lits Costs incurred for Materials: $300,000 Costs incurred for Conversion: 270,000| Total Spoiled Units detected: 1,700 Lits Other Income Statement Information: Sales: $920,000 Admin expenses $200,000 Inspection occurs when units are 60% converted, and inspection detennines if the units are "acceptable" or "spoiled". Normal Spoilage is based on 5% of units started. 80% of direct materials is added at the beginning of the process, and the remaining 20% of direct materials (for packaging) is added immediately after inspection. There were no nished goods or raw material inventories at any point of the process. Required: Part A: Calculate the value of ending WIP, and prepare an Income Statement for the month assuming that inventory is based on modied FIFO, Part B: Calculate the value of ending WIP and prepare an Income Statement for the month assuming that inventory is based on Weighted Average. (gou can omit the company name and period from the income statement)

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