Hadenville Tool Company uses a process cost system with a fifo cost flow assumption to account for

Question:

Hadenville Tool Company uses a process cost system with a fifo cost flow assumption to account for the production of its only product, which is manufactured in two departments. Units are started in the Fabricating Department and then transferred to the Finishing Department, where they are completed. Units are inspected at the 60% stage of conversion in the Fabricating Department and at the end of the process in the Finishing Department. Materials are added at the beginning of the process in both departments. Units of product spoiled in Fabricating have no ; however, units found to be spoiled at the end of the Finished process have a of $1 each. Good units are transferred from the Finishing Department to Finished Goods Inventory at cost, and spoiled units are transferred to Spoiled Goods Inventory at their . The unrecoverable cost of spoilage in both departments is viewed by management as an internal failure cost and charged to Factory Overhead Control. Data for April are:

Required:
(1) Prepare a cost of production report for each department for April.
(2) Prepare the general journal entry to record the transfer of cost out of each department during April. Assume the company maintains separate work in process inventory accounts for each manufacturing department.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...