Problems

19-30 Weighted-average method, spoilage. (LO 2)The White Crab Company is a food-processing company based in PEI. It operates under the weighted-average method of process costing and has two departments: cleaning and packaging. For the cleaning 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 process and are disposed of at zero net disposal value. All completed work is transferred to the packaging department. Summary data for May follow:

The table is as follows.

The White Crab Company, Cleaning Department	Physical Units	Direct Materials	Conversion Costs
Work in process, beginning inventory, May 1	2,500	$2,500	$2,000
Degree of completion of beginning work in process	Blank	100%	80%
Started during May	22,500	Blank	Blank
Good units completed and transferred out during May	18,500	Blank	Blank
Work in process, ending inventory, May 31	4,000	Blank	Blank
Degree of completion of ending work in process	Blank	100%	25%
Total costs added during May	Blank	$22,500	$20,000
Normal spoilage as a percentage of good units	10%	Blank	Blank
Degree of completion of normal spoilage	Blank	100%	100%
Degree of completion of abnormal spoilage	Blank	100%	100%

BackRequired

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 19-32explores additional facets of this problem.)

Check Figure: 1. Normal spoilage equivalent units, conversion costs, 1,850 units

794

19-31 FIFO method, spoilage. (LO 2)Refer to the information inProblem 19-30.

Required

DoProblem 19-30using the FIFO method of process costing.

Check Figure: EU of direct materials, 22,500