Problem: Process Costing - Equivalent Units - Tsizis Corporation

Tsizis Corporation makes a product called Turbulence in one department of the company. Directmaterials are added at the beginning of the process. Labor and overhead are added continuouslythroughout the process. Spoilage, if any, occurs at the beginning of the process just after materials have been added but before any conversion costs have been incurred.The following information relates to production during November:

1. Work in process inventory, November 1 (4,000 kg. - 75 percent complete):Direct materials $22,800Direct labour 24,650Manufacturing overhead 21,860

2. Direct materials:Inventory, November 1 - 2,000 kg. $10,000Purchases, November 3 - 10,000 kg. 51,000Purchases, November 18 - 10,000 kg. 51,500Sent to production during November - 16,000 kg.

3. Direct labour costs - $103,350.

4. Manufacturing overhead costs - $93,340

5. Transferred out to finished goods inventory - 15,000 kg.

6. Work in process inventory, November 30, 3,000 kg., 33 1/3 percent complete as toconversion costs.The FIFO method is used for both materials inventory valuation and for WIP inventories.

The controller has determined that any spoilage in excess of 1,300 units is abnormal spoilage.

Required: Calculate the cost of the units transferred out to finished goods inventory and the value of theending WIP. Calculate the value of abnormal spoilage.