Ottawa

Manufacturing 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:

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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.

Requirement

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

14,500 25% Units of beginning work-in-process inventory Percentage completion of beginning work-in-process units Cost of direct materials in beginning work in process Units started $ 0 89,500 64,500 27,000 95% 12,500 Units completed Units in ending inventory Percentage completion of ending work-in-process units Spoiled units Total costs added during current period: Direct materials Direct manufacturing labour Manufacturing overhead $ 822,000 $ 796,500 $ 772,000 Work in process, beginning: Transferred-in costs $ 105,500 $ 54,500 Conversion costs Cost of units transferred in during current period $ 811,000