Albutte, Inc., which uses the weighted
average method of process costing, has two departments: Production and Finishing.
In the Finishing department, direct materials are added at the beginning of the
process, and conversion costs are incurred evenly throughout the process. The
Finishing department began December with 2,000 units in work-in-process
inventory that were 40% complete and were valued at $10,000 ($8,000 in
transferred-in costs, $500 in direct materials, and $1,500 in conversion
costs). During December, the Finishing Department incurred $5,500 in direct
materials costs and $12,500 in conversion costs. 18,000 units costing $72,000
in the Production department were transferred into Finishing during the month.
15,000 units were finished during December, 500 of which were spoiled (spoilage
is normally 3% of good units). All unfinished units were 50% complete.
Find the value of units completed and transferred
out, ending work-in-process inventory, and the loss due to abnormal spoilage
for the Finishing department.