Steelworx Ltd accumulates costs for its single product using weighted average process costing. Direct material is added at the beginning of the production process, and conversion occurs uniformly throughout the process. All spoilage is detected at the quality inspection point, which occurs after production is 25 per cent complete. A partially completed production report for the month of April follows:

Required:
1. Prepare a schedule of equivalent units for Steelworx.
2. Calculate the costs per equivalent unit.
3. Calculate the cost of goods completed and transferred out during April.
4. Calculate the cost of spoiled units during April.
5. Calculate the cost remaining in the work in process inventory on 30 April.
6. Prepare a journal entry to record the transfer of the cost of goods completed and transferred out during April, assuming:
(a) Spoiled units represent normal spoilage.
(b) Spoiled units represent abnormal spoilage.
7. Wow would the production report above be different if the company used FIFO process costing?

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Production Report April Equivalent units Percentage of completion with respect to conversion Physical units Direct Conversion material Work in process, 1 April 100 000 60% Units started during April 200 000 Total units to account for 300 000 Units completed and transferred out during April 220 000 ? Units spoiled during production 60 000 Work in process, 30 April 20 000 80% Total units accounted for 300 000 Direct material Total Conversion Work in process, 1 April Costs incurred during April $58 500 $24 000 $82 500 114 000 190 400 76 400 $172 500 Total costs to account for $272 900 $100 400