Weighted-average method, inspection at 80% completion. (A. Atkinson) Ottawa Manu- facturing is a furniture manufacturer with two departments: moulding and finishing. The company uses the weighted-average method of process costing. In August, the following data were recorded for the Finishing Department:

Conversion costs are added evenly during the process. Direct materials costs are added when production is 90% complete. The inspection point is at the 80% stage of production. Normal spoilage is 10% of all good units that pass inspection. Spoiled units are disposed of at zero net disposal value.
REQUIRED For August, summarize total costs to account for, and assign these costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.LO1

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Units of beginning work-in-process inventory Percentage completion of beginning work-in-process units Cost of direct materials in beginning work in process 12,500 25% $ 0 Units started 87,500 Units completed 62,500 Units in ending inventory 25,000 Percentage completion of ending work-in-process units 95% Spoiled units 12,500 Total costs added during current period: Direct materials $819,000 Direct manufacturing labour $794,500 Manufacturing overhead Work in process, beginning: Transferred-in costs Conversion costs Cost of units transferred in during current period $ 52,500 $809,375 $770,000 $103,625