Reference no: EM132418511
Problem: Wilson Sports uses a process costing system. Direct material A is placed into production at the beginning of the process, while direct material B is placed into production at the end of the process. Inspection occurs at the end of the process, before the addition of direct material B. Normal spoilage is 5% of good units. For March the company had the following activities:
Beginning work-in-process inventory 4,000 units, 30% complete
Units placed in production 28,000 unit
Good units completed 24,000 units
Ending work-in-process inventory 6,000 units, 60% complete
Cost of beginning work-in-process $10,000 ($5,500 direct material A, $4,500 conversion)
Direct material A costs, current $38,000
Direct material B costs, current $26,400
Conversion costs, current $42,500
Required:
Question: Develop a production cost worksheet assuming that spoilage is recognized and the weighted-average method is used. Please explain the complete solution and provide the all calculation.