ICP 2- Spoiled Inc. Spoiled Inc. manufactures vanity mirrors for retail clothing outlets. Each mirror goes through two processes: cutting and finishing. In the cutting process, large sheets of mirrored glass are cut to a standard size and the edges are smoothed and bevelled before the cut mirrors are transferred to the finishing department. In the finishing process, a protective plastic edging and rear supports are placed on the cut mirrors Because the process of cutting is delicate, there is a significant amount of spoilage expected at this stage. The company expects normal spoilage to be 15% of the good units that pass through inspection. Thus, the mirrors are inspected for cutting flaws prior to the smoothing and bevelling of the edges. Mirrors with flaws are discarded. It is estimated that the inspection occurs when the mirrors are 40% through the cutting department process for conversion costs All the materials are added at the beginning of the process The following is the summary data for the most recent month in the cutting department: Physical Direct Conversion units materials costs WIP, beginning Percentage of completion, beginning WIP Started during the month Costs added during the month Good units completed and $ 11,500 50% 2,300 $ 9,200 100% 20,200 $ 81,800 $ 200,000 transferred out 18,000 1,500 WIP, ending Percentage of completion, ending WIP 100% 30% Required: Part 1 Assume that the company uses process costing and a weighted average cost flow assumption and perfom the following procedures: a) Calculate the cost assigned to units completed and transferred out to the finishing department during the month b) Calculate the cost assigned to abnomal spoilage during the month. Calculate the cost assigned to ending WIP inventory. c) d) Prepare the journal entries for the transfers to finishing and for spoilage. Part 2 Assume that the company uses process costing and a FIFO cost flow assumption and perform the following procedures: a) Calculate the cost assigned to units completed and tran sferred out to the finishing department during the month. b) Calculate the cost assigned to abnormal spoilage during the month. c) Calculate the cost assigned to ending WIP inventory. d) Prepare the journal entries for the transfers to finishing and for spoilage