1841 Weighted-average method, inspection at 80% completion. (A. Atkinson) The Horsheim Company is a furniture manufacturer with two departments: molding and finishing. The company uses the weighted-average method of process costing. In August, the following data were recorded for the finishing department 25,000 25% Units of beginning work in process inventory Percentage completion of beginning work in process units Cost of direct materials in beginning work in process Units started Units completed Units in ending inventory Percentage completion of ending work in process units Spoiled units Total costs added during current period 175,000 125,000 50,000 95% 25,000 Direct materials Direct manufacturing labor Manufacturing overhead $1,638,000 $1,589,000 $1,540,000 Work in process, beginning Transferred-in costs Conversion costs S 207,250 $ 105,000 $1,618,750 Cost of units transferred in during current period 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 1. For August, summarize total costs to account for and assign these costs to units completed and trans 2. What are the managerial issues involved in determining the percentage of spoilage considered nor units that pass inspection. Spoiled units are disposed of at zero net disposal value ferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. mal? How would your answer to requirement 1 differ if all spoilage were treated as normal