(Appendix; normal and abnormal discrete spoilage; WA) Shelley Brian Tools manufactures one of its products in a two-department process. A separate Work in Process account is maintained for each department, and the com¬ pany uses a weighted average process costing system. The first department is Molding; the second is Grinding. At the end of production in Grinding, a quality inspection is made and then packaging is added. Overhead is ap¬ plied in the Grinding Department on a machine-hour basis. Production and cost data for the Grinding Department for August 2006 follow:LO1.

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Production Data Beginning inventory (% complete: material, 0%; labor, 30%; overhead, 40%) Transferred in from Molding Normal spoilage (found at the end of processing during quality control) Abnormal spoilage (found at end of processing during quality control) Ending inventory (% complete: material, 0%; labor, 40%; overhead, 65%) Transferred to finished goods 1,000 units 50,800 units 650 units 350 units 1,800 units ? units