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: 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:

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 process. (Problem 18-37 explores additional facets of this problem.)

Home Insert Page Layout Formulas Data Review View PhysicalDct Conversion World Class Steaks: Preparation (Prep) Dept Units Materials Costs 7.200 $ 10,632 $ 2.778 2Work 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 100% 5% 60,000 49,200 10,080 25% $111,000$89,664 100% 10% 100% 100% 100% 100%