Weighted-average method, Packaging Department (continuation of 18-30). In Boston Company’s Packaging Department, 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 Cleaning Department, which were calculated in Problem 18-30 using the weighted-average method of process costing. Summary data for May follow.

For the Packaging Department, use the weighted-average method to 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.

Physical Transferred-in Direct Materials Conversion The Boston Company: Packaging Department Work in process, beginning inventory (May 1) Degree of completion of beginning work in process Started during May Good units completed and transferred out during May Work in process, ending inventory (May 31) Degree of completion of ending work in process Total costs added during May Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage Units Costs $16,125 100% Costs $ 6,125 7,500 0% 80% 18,500 15,000 10,000 100% 25% $12,375 0% $1,600 5% 100% 100% 100% 100%