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Saba Plastics has a work in process inventory of 250 yards 100% complete with re

ID: 2372954 • Letter: S

Question

Saba Plastics has a work in process inventory of 250 yards 100% complete with regard to material, and 80% complete with regard to conversion. 9,250 yards were added during the period. 7,200 yards were completed. Normal spoilage amounted to 5% of completed units. Abnormal spoilage amounted to 490 yards, primarily due to malfunctioning machines in this time period. WIP end of the period was 80% complete with regard to materials and 60% complete with regard to conversion costs. The cost of WIP beginning was $3,500, $1,000 of which was for conversion costs. From the total cost of $132,280 of added costs, $37,410 was for conversion costs. Cost per unit should be rounded to four decimal points.

Abnormal spoilage costs using the FIFO method amount (rounded) to is?

Explanation / Answer

10.57 $