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:

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 labor

Manufacturing overhead Work in process, beginning

Transferred-in costs

Conversion costs

Cost of units transferred in during current period

25,000

175,000 125,000 50,000 90% 25,000

$1,638,000 $1,589,000 $1,540,000

$207,250 $105,000 $1,618,750

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

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: 25,000 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 175,000 125,000 50,000 90% 25,000 Total costs added during current period: Direct materials Direct manufacturing labor Manufacturing overhead Work in process, beginning Transferred-in costs Conversion costs Cost of units transferred in during current period $1,638,000 $1,589,000 $1,540,000 $207,250 $105,000 $1,618,750 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 (10%) and assign these costs to units completed and transferred out (including normal spoilage) (4%), to abnormal spoilage (3%), and to units in ending work in process (3%)