Wetherby Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Labor and overhead are added continuously throughout the process. Factory overhead is applied on the basis of direct labor hours at the rate of $3 per hour. The company combines labor and overhead in computing product cost. Prior to May, when a change in the process was implemented, work-in-process inventories were insignificant. The change in the process allows increased production but results in considerable amounts of work-in-process inventory. Also, the company had 1,500 spoiled gallons in May—one-half of which was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production process.

These data relate to actual production during the month of May:

 

					Costs
Work-in-process inventory, May 1
	Direct materials-chemicals				$45,500
	Direct labor		$10	hr	$8,500
	Factory overhead				$2,550
May costs added:
	Direct materials-chemicals				$228,400
	Direct labor		$10	hr	$38,500
	Factory overhead				$11,550
					Units
Work-in-process inventory, May 1
	25%	complete as to conversion activity			4,000
	100%	complete as to direct materials
Sent to shipping department					24,000
Started in May					26,000
Work-in-process, May 31
	80%	complete as to conversion activity			4,500
	100%	complete as to direct materials
Total spoilage (units), in May					1,500
% Spoilage considered normal					50%
Stage of processing when spoilage is detected					100%

Required

Prepare a production cost report for May using the weighted-average method.