The Scooter Company uses a process cost system for making scooter wheels. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of October the work-in-process is 40 percent complete and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process. Other data for the month include:

Required:

1) Prepare a production cost worksheet assuming that spoilage is recognized and the weighted average method is used.

2) Prepare journal entries to record transferring out of cost from the work-in-process accounts.

Column1	Column2	Column3	Column4	Column5
Beginning work-in-process inventory 1,600 units
Units started 20,000 units
Units placed in finished goods 12,000 units
Ending work-in-process inventory 1,200 units
Normal spoilage % on all units finished 20 percent
Conversion costs $40,320
Cost of direct materials $40,000
Beginning work-in-process costs:
Materials $4,000
Conversion $4,032