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:

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. (Problem 18-32 explores additional facets of this problem.)

Transcribed Image Text:

Fie Edt View Insert Format Tools Data Window Hep Physica Conversion Units Materials Costs 2,500 $ 2,500 $2,000 100% The Red Deer Company: Cleaning Department 2 Work in process, beginning inventory (May 1) 3 Degree of completion of begining work in process 4 Started during May 5 Good units completed and transferred out during May 6 Work in process, ending inventory (May 31) 7 Degree of completion of ending work in process 8 Total costs added during May 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 80% 22,500 18,500 4,000 25% $22,500$20,000 100% 10% 100% 100% 100% 100% |