Chapter 18, Problem 18.38P

FIFO method, shipping department (continuation of 18-36). Refer to the information in Problem 18-37 except that the transferred-in costs of beginning work in process on May 1 are $66,180 (instead of $67,397). Transferred-in costs for May equal the total cost of good units completed and transferred out in May from the prep department, as calculated in Problem 18-36 using the FIFO method of process costing.

Required

For the shipping department, use the FIFO method to 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.

18-37 Weighted-average method, shipping department (continuation of 18-35). In the shipping department of World Class Steaks, 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 prep department, which were calculated in Problem 18-35 using the weighted-average method of process costing. Summary data for May follow.