D QUESTION 1: Process Costing - Weighted Average, Spoilage (19 marks) Version D S&S Co. uses a Weighted Average process costing system to account for the costs. In Department 1, direct materials are added at the beginning of the process. Conversion costs are added evenly throughout the process. Inspection occurs when production is 90% complete. Normal spoilage is 3% of good units completed and transferred 6. Following is the additional information for December in Dept. 1. out Direct Conversion Units Materials Costs 10 WIP Dec 1 3.100 $14,860 $12,624 Degree of completion for 11 2 50% beginning WIP 12 Started during December 15,000 $140,8001 $443,000 13 Completed and transferred out 12,400 14 WIP, Dec 31 5.2001 Degree of completion for ending 60% WIP 16 17 Required: 18 1. Prepare the schedule to calculate equivalent units in Department 1 under the Weighted Average method. (10 marks) 19 20 21 BRE 2. Calculate the cost per equivalent unit using the weighted Average method. (2 marks 41 45 46 42 GB 49 3. Assign costs to units transferred out, to abnormal spoilage, and to ending WIP under WA method. (5 marks) 50 51 52 53 54 55 56 59 4. Prepare journal entries for the costs transferred out of the Department including abnormal spoilage. (2 marks) 61 63 65 66 01 - WA New