Ialani Corp . uses a job order costing system for the yachts it constructs . On September 1 , 2013 , the company had the following account balances : Exercise 6-23 – 5 POINTS WA & FIFO EUP On April 30 , 2013 , Leander Co . had 21,600 units in process that were 85 percent complete as to material , 60 percent complete as to direct labor , and 45 percent complete as to overhead . During May , 561,000 units were started . The 13,700 units in ending inventory were 75 percent complete as to material , 25 percent complete as to direct labor , and 10 percent complete as to overhead . Exercise 6-46 – 3 POINTS Appendix 3 ; FIFO ; normal and abnormal loss Omaha Foods manufactures corn meal in a continuous , mass production process . Corn is added at the beginning of the process . Normal losses are minimal and abnormal losses infrequently occur when foreign materials are found in the corn meal . Routine inspection occurs at the 95 percent completion point as to conversion .
During May , a machine malfunctioned and dumped salt into 8,000 pounds of corn meal . This abnormal loss occurred when conversion was 70 percent complete on those pounds of product . The error was immediately noticed , and those pounds of corn meal were pulled from the production process . Two thousand additional pounds of meal were detected as unsuitable at the routine inspection point ; this amount was considered within normal limits . Production data for the month follow . Problem 6-49 – 3 POINTS WA cost assignment Fresh Seasons is a contract manufacturer for Delectable Dressing Company . Fresh Seasons uses a weighted average process costing system to account for its salad dressing production . All ingredients are added at the start of the process . Delectable provides reusable vats to Fresh Seasons for the completed product to be shipped to Delectable for bottling , so Fresh Seasons incurs no packaging costs . Production and cost information for Fresh Seasons during April 2013 follow . ========================================================