The Red Deer Company is a food processing company based in
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:
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.)
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