The Scooter Company uses a process cost system for making scooter wheels. Materials are added at...

80.2K

Verified Solution

Question

Advance Math

The Scooter Company uses a process cost system for makingscooter wheels. Materials are added at the beginning of the processand conversion costs are uniformly incurred. At the beginning ofOctober the work-in-process is 40 percent complete and at the endof the month it is 60 percent complete. Spoilage is detected at theend of the process. Other data for the month include:
Beginning work-in-process inventory 1600 units
Unitsstarted 20000 units
Unitsplaced in finished goods 12000 units
Endingwork-in-process inventory 1200 units
Normalspoilage % on all units finished 20 percent
Conversion costs 40320
Cost ofdirect materials 40000
Beginningwork-in-process costs:
Materials 4000
Conversion 4032
Required
a. Prepare a production cost worksheet assuming that spoilage isrecognized and the weighted-average method is used.
b.Prepare journal entries to record transferring out of costfrom the work-in-process accounts.
please explain calulations.

Answer & Explanation Solved by verified expert

3.7 Ratings (522 Votes)

SOLUTION AB Production Worksheet Direct Material Conversion Cost of of Flow of Production Whole Units Completion units Completion units Beginning Work in process inventory 1500 Units Started 20000 Total Units to be accounted for 21500 Good units completed and transferred during the current period 12000 100 12000 100 12000 Normal Spoilage 2400 100 2400 100 2400 Abnormal See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Beginning work-in-process inventory	1600	units
Unitsstarted	20000	units
Unitsplaced in finished goods	12000	units
Endingwork-in-process inventory	1200	units
Normalspoilage % on all units finished	20	percent

Conversion costs	40320
Cost ofdirect materials	40000
Beginningwork-in-process costs:
Materials	4000
Conversion	4032