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Question :
Sea Eagles, Inc. uses weighted-average process costing. During the current period 60,000 units were started, starting WIP consisted of 8,000 units, 60% complete, and ending WIP was 10,000 units, 30% complete. Normal rework is 2% of the 60,000 units inspected. The inspection point is at the 70% point, and rejected units are returned to the 40% point. The spoilage inspection point is at 80%. Normal spoilage is 3% of the unit's inspected, and 2,000 units were rejected. Materials are added at the beginning of the process and conversion costs are applied evenly. Starting WIP costs were: materials $39,000 and conversion costs $140,000. Current costs were: materials $301,000 and conversion costs $1,084,000.
Evaluate the cost of abnormal rework and spoilage, goods completed, and ending work in process.
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