The Sofa Company manufactures furniture in two departments: molding and finishing. The company uses the weighted-average method for process costing. August data for the finishing department are as follows:

 

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Units of beginning work-in-process inventory Percentage completion of beginning work-in-process units 25%
Units started 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... Show more

 

Conversion costs are added evenly during the process. Direct material 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:

 

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.

 

Units of beginning work-in-process inventory Percentage completion of beginning work-in-process units 25% 25,000 Units started 175,000 Units completed Units in ending inventory 125,000 50,000 Percentage completion of ending work-in-process units Spoiled units 90% 25,000 Total costs added during current period: $1,638,000 $1,589,000 Direct materials Direct manufacturing labor Manufacturing overhead Work in process, beginning $1,540,000 Transferred-in costs $207,250 Conversion costs $105,000 Cost of units transferred in during current period $1,618,750