Endicott Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March, there were 1,400 units in beginning inventory with a direct material cost of $700. Direct materials totaled $15,000 for the month. Work-in-process records revealed that 35,000 units were started in March and that 30,000 were finished. 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 when spoilage units are recognized or when they are ignored?
b. What are the direct material amounts allocated to the work-in-process ending inventory when spoilage units are recognized or ignored?

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The Answer of Endicott Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March, there were 1,400 units in beginning inventory with a direct material cost of $700. Direct materials totaled $15,000 for the month. Work-in-process records revealed that 35,000 units were started in March and that 30,000 were finished. 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 when spoilage units are recognized or when they are ignored?
b. What are the direct material amounts allocated to the work-in-process ending inventory when spoilage units are recognized or ignored?

Endicott Shoes Manufactures Shoes