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ashly138 ashly138
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The Skate Board Company uses a process cost system for making skateboard wheels. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the work-in-process is 40 percent complete and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process. Other data for the month include:

Beginning work-in-process inventory   1,600 units
Units started   20,000 units
Units placed in finished goods   12,000 units
Ending work-in-process inventory   1,200 units
Normal spoilage % on all units finished   20 percent

Conversion costs   $40,320
Cost of direct materials   $40,000
Beginning work-in-process costs:
Materials   $4,000
Conversion   $4,032

Required:
a.   Prepare a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used.
b.   Prepare journal entries to record transferring out of cost from the work-in-process accounts.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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ashly138 Author
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6 years ago
Just got PERFECT on my quiz
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this is exactly what I needed
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You make an excellent tutor!
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