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.
