18-35 Weighted average method, spoilage. World Class Steaks is a meat-processing firm based in Texas. It operates under the weighted average method of process costing and has two departments For the prep department, summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in pro Problems preparation (prep) and shipping. For the prep 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 prep process and are disposed of at zero net disposal value. All completed work is transferred to the shipping department. Summary data for May follow: Home Insert Formulas Data Page Layout A D Conversion Costs $ 2,778 N Review View B Physical Direct Units Materials 7,200 $ 10,632 100% 60,000 49,200 10,080 1 World Class Steaks: Preparation (Prep) Department Work in process, beginning inventory (May 1) 3 Degree of completion of beginning 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 50% 100% $111,000 25% $89,664 10% 100% 100% 100% 100% cess. (Problem 18-37 explores additional facets of this problem.) 18-37 Weighted-average method, shipping department (continuation of 18-35). In the shipping depart- ment of World Class Steaks, conversion costs are added evenly during the process, and direct materials are added at the end 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 next department The transferred-in costs for May equal the total cost of good units completed and transferred out in May from the prep department, which were calculated in Problem 18-35 using the weighted-average method of process costing. Summary data for May follow. Home Insert Formulas Page Layout Data Review View B D E Physical Units 25,200 Transferred-In Costs $67.397 100% Direct Materials $ 0 0% Conversion Costs $46,950 70% 1 World Class Steaks: Shipping Department 2 Work in process, beginning inventory (May 1) 3 Degree of completion of beginning 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 49,200 52,800 16,800 100% ? 0% $11,520 40% $81,690 7% 100% 100% 100% 100% For the shipping department, use the weighted-average method to summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Required 18-35 Weighted average method, spoilage. World Class Steaks is a meat-processing firm based in Texas. It operates under the weighted average method of process costing and has two departments For the prep department, summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in pro Problems preparation (prep) and shipping. For the prep 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 prep process and are disposed of at zero net disposal value. All completed work is transferred to the shipping department. Summary data for May follow: Home Insert Formulas Data Page Layout A D Conversion Costs $ 2,778 N Review View B Physical Direct Units Materials 7,200 $ 10,632 100% 60,000 49,200 10,080 1 World Class Steaks: Preparation (Prep) Department Work in process, beginning inventory (May 1) 3 Degree of completion of beginning 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 50% 100% $111,000 25% $89,664 10% 100% 100% 100% 100% cess. (Problem 18-37 explores additional facets of this problem.) 18-37 Weighted-average method, shipping department (continuation of 18-35). In the shipping depart- ment of World Class Steaks, conversion costs are added evenly during the process, and direct materials are added at the end 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 next department The transferred-in costs for May equal the total cost of good units completed and transferred out in May from the prep department, which were calculated in Problem 18-35 using the weighted-average method of process costing. Summary data for May follow. Home Insert Formulas Page Layout Data Review View B D E Physical Units 25,200 Transferred-In Costs $67.397 100% Direct Materials $ 0 0% Conversion Costs $46,950 70% 1 World Class Steaks: Shipping Department 2 Work in process, beginning inventory (May 1) 3 Degree of completion of beginning 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 49,200 52,800 16,800 100% ? 0% $11,520 40% $81,690 7% 100% 100% 100% 100% For the shipping department, use the weighted-average method to summarize the total costs to account for and assign those costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Required