Redwing Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March there were 2,000 units in beginning inventory with a direct material cost of $1,000. Direct materials totalled $20,000 for the month. Work in process records revealed that 40,000 shoes were started in March and that 36,000 were finished. Normal spoilage of 5 percent 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. Redwing uses the weighted-average method.
Required:
a. What are the direct materials costs assigned to completed good units when spoilage units are recognized and when they are not recognized?
b. What are the direct material amounts allocated to the work in process ending inventory when spoilage units are recognized and when spoilage units are ignored?

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The Answer of Redwing Shoes manufactures shoes. All direct materials are included at the inception of the production process. For March there were 2,000 units in beginning inventory with a direct material cost of $1,000. Direct materials totalled $20,000 for the month. Work in process records revealed that 40,000 shoes were started in March and that 36,000 were finished. Normal spoilage of 5 percent 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. Redwing uses the weighted-average method.
Required:
a. What are the direct materials costs assigned to completed good units when spoilage units are recognized and when they are not recognized?
b. What are the direct material amounts allocated to the work in process ending inventory when spoilage units are recognized and when spoilage units are ignored?

Redwing Shoes Manufactures Shoes