2. (Weighted-average method, spoilage) The Boston Company is a food-processing company based in San Francisco. It...

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2. (Weighted-average method, spoilage) The Boston Company is a food-processing company based in San Francisco. 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: Physical The Boston Company: Cleaning Department Work in process, beginning inventory (May 1) Units Direct Materials Conversion Costs 3,000 $4,500 $2,700 Degree of completion of beginning work in process 100% 60% Started during May 25,000 Good units completed and transferred out during May 20,500 Work in process, ending inventory (May31) 4,200 Degree of completion of ending work in process 100% 30% Total costs added during May $46,250 $37,216 Normal spoilage as a percentage of good units 10% Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 100% 100% 100% 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. (Assignment No. 1 explores additional facets of this problem.) 3. (FIFO method, spoilage) Refer to the information in Problem No. 2. Do Problem No. 2 using FIFO method of process costing. (Assignment No. 2 explores additional facets of this problem.) 2. (Weighted-average method, spoilage) The Boston Company is a food-processing company based in San Francisco. 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: Physical The Boston Company: Cleaning Department Work in process, beginning inventory (May 1) Units Direct Materials Conversion Costs 3,000 $4,500 $2,700 Degree of completion of beginning work in process 100% 60% Started during May 25,000 Good units completed and transferred out during May 20,500 Work in process, ending inventory (May31) 4,200 Degree of completion of ending work in process 100% 30% Total costs added during May $46,250 $37,216 Normal spoilage as a percentage of good units 10% Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 100% 100% 100% 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. (Assignment No. 1 explores additional facets of this problem.) 3. (FIFO method, spoilage) Refer to the information in Problem No. 2. Do Problem No. 2 using FIFO method of process costing. (Assignment No. 2 explores additional facets of this problem.)