Problems 18-35 Weighted-average method, spoilage. World Class Steaks is a meat-processing firm based in Texas. It operates under the weighted-average method of process costing and has two departments preparation (prep) and shipping. For the prep department, conversion costs are added evenly during the process, and direct materials are added at the beginning of the process. Spoiled units are detected upon inspection at the end of the prep process and are disposed of at zero net disposal value. All completed work is transferred to the shipping department. Summary data for May follow: Home Insert Page Layout A Formulas Data Review View B C D 1 World Class Steaks: Preparation (Prep) Department Work in process, beginning inventory (May 1) Physical Direct Conversion Units Materials Costs 7,200 $ 10,632 $2,778 3 4 Started during May Degree of completion of beginning work in process 100% 50% S Work in process, ending inventory (May 31) Good units completed and transferred out during May 60,000 49,200 7 Degree of completion of ending work in process 10,080 25% Total costs added during May Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage For the prep department, summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in pro- cess. (Problem 18-37 explores additional facets of this problem.) 100% $111,000 $89,664 10% 100% 100% 100% 100%