Maxire Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March, there were 2,800 units in beginning inventory with a direct material cost of $1,400. Direct materials totaled $35,000 for the month. Work-in-process records revealed that 70,000 units were started in March and that 60,000 were finished. When March ended there were 12,800 units in work-in-process. Normal spoilage of 2% of units finished was incurred. Ending work-in-process units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete. Endicott uses the weighted-average method.
Required:
a.What are the direct materials costs assigned to completed good units?
b.What are the direct material amounts allocated to the work-in-process ending inventory?

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The Answer of Maxire Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March, there were 2,800 units in beginning inventory with a direct material cost of $1,400. Direct materials totaled $35,000 for the month. Work-in-process records revealed that 70,000 units were started in March and that 60,000 were finished. When March ended there were 12,800 units in work-in-process. Normal spoilage of 2% of units finished was incurred. Ending work-in-process units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete. Endicott uses the weighted-average method.
Required:
a.What are the direct materials costs assigned to completed good units?
b.What are the direct material amounts allocated to the work-in-process ending inventory?

Maxire Shoes Manufactures Shoes