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The Red Deer Company is a food-processing company based in Alberta. It operates under the weighted average method of process costing and has two departments:

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The Red Deer Company is a food-processing company based in Alberta. 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: 2 (Click the icon to view the data.) Required 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 x Data Table Direct Conversion Materials $2,500 Costs $2,000 100% 80% Physical The Red Deer Company: Cleaning Dept. Units Work in process, beginning inventory (May 1) 2.500 Degree of completion of beginning work in process Started during May 26,000 Good units completed and transferred out during May 18,500 in process, ending inventory (May 31) 4,000 Degree of of completion of ending work in process Total costs added during May Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage Work 100% $22.500 25% $20,000 10% 100% 100% 100% 100%

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