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Problem 1: Boateng Corp manufactures artificial turf with all direct materials added at the beginning of the production process. During the month, the company starts 95,000 m, completing and transferring 90,000 m, 1,575 m is counted as spoiled. 1.5% normal spoilage is expected. The company begins the period with no work in process inventory, retaining all remaining unspolied units from the current period as ending work in process inventory. The company paid $380,000 for direct materials in the period. What direct material cost would Boateng allocate to abnormally spolied units?
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