SPRING/SUMMER 2018 ADM 3346X REVIEW QUESTION - PROCESS COSTING Ottawa Manufacturing is a furniture manufacturer with two departments: Moulding and inishing. The company uses the weighted-average method of process costing system. In August, the following were recorded for the Finishing Department: Units of beginning inventory 12,500 25% Percentage of beginning units completed Cost of direct materials in beginning WIP Units started Units completed Units in ending inventory Percentage of ending units completed Spoiled units Costs added during current period: $ O 87,500 62,500 25,000 95% 12,500 $ 819,000 $794,500 S 770,000 Direct materials Direct manufacturing labour Manufacturing overhead Work in process, beginning Transferred-in costs Conversion costs Cost of units transferred in during current period $ 103,625 S 52,500 $ 809,375 Conversion costs are incurred evenly throughout 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. Required: Prepare a cost of production report for Ottawa Manufacturing for the month of August