Weighted Average and Spoilage The Alston Company operates under a process-cost system. It has two departments, Cleaning and Milling. For both departments, conversion costs are applied in proportion to the stage of completion. But materials are applied at the beginning of the process in the cleaning department, and additional materials are added at the end of the milling process. Following are the costs and unit production statistics for May. All unfinished work at the end of May is one-fourth completed. All beginning inventories (May 1) were four-fifths completed as of May 1. All completed work is transferred to the next department.

BEGINNING INVENTORIES: CLEANING MILLING Cleaning: $1,000 materials, $800 conv. costs $1,800 Milling: $6,450 previous dept. cost (transferred-in cost) and $2,450 conv. costs $8,900 CURRENT COSTS Materials $9,000 $ 640 Conversion costs $8,000 $4,950 PHYSICAL UNITS Units in beginning inventory 1,000 3,000 Units started this month 9,000 7,400 Total units finished and transferred 7,400 6,000 Normal spoilage 500 400 Abnormal spoilage 500 0 Additional Factors 1. Spoilage is assumed to occur at the end of each of the two processes, when the units are inspected.

2. Assume that there is no other waste, shrinkage, evaporation, or abnormal spoilage than that indicated in the tabulation above.

3. Carry unit-cost calculations to three decimal places where necessary.

Calculate final totals to the nearest dollar.

required | Using the weighted-average method, show for each department:

. Analysis of physical flows and an analysis of equivalent performance.

- Calculations of unit costs.

| 3. Detailed presentation of the total values assigned to goods transferred out and the total values assigned to ending work in process. lop5