Question - Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process. The normal spoilage rate is 10% of good units completed. The cost of the beginning work-in-process in the month of May is $3,000,000, including $1,600,000 of input of materials, 200,000 units, and $1,400,000 for conversion costs. The beginning work-in-process is 70% complete. During May, the input includes $6,400,000 for materials, 800,000 units and $8,200,000 for conversion costs. There were 800,000 good units finished. In addition, the ending work-in-process in May is 100,000 units, 60% complete. The abnormal spoilage is 20,000 units. All spoilage occurred when all processing was complete, at the final inspection.
Required: Use the weighted-average method to calculate:
(1) The dollar value of abnormal spoilage.
(2) The cost of the good units finished.
(3) The cost of ending work-in-process inventory.