Group Assignment: Maximum of four students Marks: 5*5 =25

The Boston Company is a food-processing company based in Hargeisa. It operates under the weighted-
average method of process costing and has two departments: cleaning and packaging. For the cleaning
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 process and are
disposed of at zero net disposal value. All completed work is transferred to the packaging department.
Summary data for May follow:

For the cleaning department, summarize total costs to account for and assign total costs to units completed
and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in
process. Carry unit-cost calculations to four decimal places when necessary. Calculate final totals to the
nearest dollar.

Required
Under weighted average method and first-in-first-out (FIF0) method
Step 1: Summarize the flow of physical units of output.
Step 2: Compute output in terms of equivalent units.
Step 3: Summarize total costs to account for.
Step 4: Compute cost per equivalent unit.
Step 5: Assign total costs to units completed and to units in ending work in process.