Problem:
(Normal and abnormal spoilage; WA) Big Stone Furniture produces breakfast tables in a two-department process: Cutting/Assembly and Lamination. Varnish isadded in the Lamination Department when the goods are 60 percent completeas to overhead. Spoiled units are found on inspection at the end of production.Spoilage is considered discrete.
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PRODUCTION DATA FOR APRIL 2000
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Beginning inventory (80% complete as to labor, 70% complete as to overhead)
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2,000 units
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Transferred in during month
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14,900 units
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Ending inventory (40% complete as to labor, 20% complete as to overhead)
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3,000 units
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Normal spoilage (found at final quality inspection)
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200 units
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Abnormal spoilage (found at 30% completion as to labor and 15% as to
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overhead; the sanding machine was misaligned and scarred the tables)
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400 units
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The remaining units were transferred to finished goods.
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COST DATA FOR APRIL 2000
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Beginning Work in Process Inventory:
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$ 15,020
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Prior department costs
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1,900
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Varnish
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4,388
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Direct labor
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11,044
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$ 32,352
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Overhead
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$137,080
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Current period costs:
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Prior department costs
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14,030
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Varnish
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46,000
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Direct labor
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113,564
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Overhead
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310,674
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Total costs to account for
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$343,026
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Determine the proper disposition of the April costs for the Lamination Departmentusing the weighted average method; include journal entries.