Lonsdale Brewing Company (LBCl is a small independent organic certied brewery in North Vancouver. LBC has two production departments, Brewing and Bottling. This question relates to the Bottling Department. For processing in the Bottling Department, goods are transferred in from the Brewing Department. LBC uses the weighted average method in its process-costing system. In the Bottling Department, Direct Materials are added at two stages: material A is added at the 20% completion stage and material B is added at the 93% completion stage. Inspection occurs when units are 90% complete and conversion costs are incurred uniformly throughout the process. Tho following ooto woro rotorooo for Bottling Qooamont in tho month of |onoor_'y. Units in beginning work-inaprocess inventory 38,000 9f- Completion of beginning worklinnprocess units T596 Units transferred in from Brewing dept 120,000 Units completed and transferred out 125,000 Units in ending workinprocess inventory 13,000 56 Completion of ending work-inprocess units 95% Costs related to opening inventog Transferred-in costs $160,000 Direct material - A~ costs 78,000 Direct material - B - costs ? Conversion costs 124,000 Costs added during current period: Transferred-in costs $648,000 Direct materials - A 320,000 Direct materials - B 480,000 Conversion costs 1,312,000 Normal spoilage is considered to be 6% of the units that pass inspection. The company pro-rates normal spoilage between cost of goods manufactured and ending work-in-process