Weighted-average method, spoilage. Windsor Company is a food-processing company. It

; operates under the weighted-average method of process costing and has two departments, pee Seana ry or Cleaning and Packaging. For the Cleaning Department, conversion costs are added uniformly ee nunis throughout the processes, and direct materials are added at the beginning of the process.

% Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal value. All completed work is transferred to the Packaging Department. Summary data for May follow:

REQUIRED For the Cleaning Department, summarize total costs to account for, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Carry unit-cost calculations to four decimal places when necessary.
Calculate final totals to the nearest dollar. (Problem 18-35 explores additional facets of this problem.)

LO1

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Physical Direct Conversion Units Materials Costs Work in process, beginning inventory (May 1) 2,500 $2,500 $ 2,000 Degree of completion of beginning WIP 100% 80% Started during May 22,500 Good units completed and transferred out during May 18,500 Work in process, ending inventory (May 30) 4,000 Degree of completion of ending WIP Total costs added during May 100% 25% $22,500 $20,000 Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 10% 100% 100% 100% 100%