(FIFO EUP computations; normal loss) Oehkle Inc. produces paint in a process in which spoilage occurs continually. Spoilage of 2 percent or fewer of the gallons of raw material placed into production is considered normal. The following operating statistics are available for June 2010:
|
Beginning WIP Inventory (60% complete as to material; 70% complete as to conversion) |
16,000 gallons |
|
Started during June |
360,000 gallons |
|
Ending WIP Inventory (40% complete as to material; 20% complete as to conversion) |
8,000 gallons |
|
Spoiled |
2,800 gallons |
a. How many gallons were transferred out?
b. What are the FIFO equivalent units of production for material? For conversion?