The company produces one product in one production department and uses process costing (weighted average approach)....

  

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The company produces one product in one production department and uses process costing (weighted average approach). Direct materials are added at the beginning of the production process. Conversion costs are incurred throughout production at the same rate as the production process. On January 1, there were no units in Finished Goods. On January 1, W-I-P inventory consisted of 5,000 units with the following costs: $ 58,400 Direct materials 88.000 Conversion costs S146,400 Total During January, the company started production of 20,000 units. During January, 19,000 units were completed and shipped to the finished goods warehouse. Quality inspection of units occurs after 80% of physical production has been completed. During January, 2.000 units failed inspection of which 1,200 units were considered "normal" spoilage. On January 31, W-I-P inventory consisted of 4,000 units which were 50% complete regarding conversion effort. During January, the company sold 12,000 units. Ending Finished Goods consisted of 7,000 units. Production costs incurred during January: $ 491.600 Direct materials 816.000 Conversion costs $1.307.600 Total Required (1) Prepare Production Cost Report for January (2) Determine the cost of normal and abnormal spoilage. Provide the journal entry for abnormal spoilage. (3) Determine the value of ending W-1-P. Show activities in W-1-P account (use T-account). (4) Determine the valuation for Cost of Goods Sold and ending Finished Goods. The company produces one product in one production department and uses process costing (weighted average approach). Direct materials are added at the beginning of the production process. Conversion costs are incurred throughout production at the same rate as the production process. On January 1, there were no units in Finished Goods. On January 1, W-I-P inventory consisted of 5,000 units with the following costs: $ 58,400 Direct materials 88.000 Conversion costs S146,400 Total During January, the company started production of 20,000 units. During January, 19,000 units were completed and shipped to the finished goods warehouse. Quality inspection of units occurs after 80% of physical production has been completed. During January, 2.000 units failed inspection of which 1,200 units were considered "normal" spoilage. On January 31, W-I-P inventory consisted of 4,000 units which were 50% complete regarding conversion effort. During January, the company sold 12,000 units. Ending Finished Goods consisted of 7,000 units. Production costs incurred during January: $ 491.600 Direct materials 816.000 Conversion costs $1.307.600 Total Required (1) Prepare Production Cost Report for January (2) Determine the cost of normal and abnormal spoilage. Provide the journal entry for abnormal spoilage. (3) Determine the value of ending W-1-P. Show activities in W-1-P account (use T-account). (4) Determine the valuation for Cost of Goods Sold and ending Finished Goods.

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