(Comprehensive; weighted average and FIFO) Kansas Company mines salt in central Kansas. Approximately 30 percent of the mined salt is processed into table salt. Kansas Company uses a process costing system for the table salt operation. Pro¬ cessing takes place in two departments. Department 1 uses FIFO costing, and Department 2 uses weighted average. The cost of the processed salt transferred from Department 1 to Department 2 is averaged over all the units transferred.

Salt is introduced into the process in Department 1. Spoilage occurs con¬ tinuously through the department and normal spoilage should not exceed 10 percent of the units started; a unit is 50 pounds of salt.

Department 2 packages the salt at the 75 percent completion point; this material does not increase the number of units processed. A quality control inspection takes place when the goods are 80 percent complete. Spoilage should not exceed 5 percent of the units transferred in from Department 1.

The following production and cost data are applicable to Kansas Company’s table salt operations for May 1997:LO1

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DEPARTMENT 1 PRODUCTION DATA Beginning inventory (65% complete) 5,000 Units started 125,000 Units completed 110,000 Units in ending inventory (40% complete) 14,000 DEPARTMENT 1 COST DATA Beginning inventory: Material Conversion Current period: Material Conversion Total costs to account for DEPARTMENT 2 PRODUCTION DATA Beginning inventory (90% complete) Units transferred in Units completed Units in ending inventory (20% complete) $ 7,750 11,500 $ 19,250 $190,400 393,225 583,625 $602,875 40,000 110,000 120,000 22,500