Task: Production Cost Report (with Spoilage), Weighted-Average Method
Nader Paints makes an environmentally sound paint. The following data are available for the month of April:
|
|
Units
|
Percentage
Complete
|
Costs
|
|
Beginning WIP Inventory, April
|
11,000
|
|
|
|
Direct Materials
|
|
75
|
|
|
Conversion costs
|
|
70
|
|
|
Units started in April
|
6,000
|
|
|
|
Costs incurred in April:
|
|
|
|
|
Direct materials
|
|
|
$16,000
|
|
Conversion costs
|
|
|
$15,800
|
|
Ending WIP inventory
|
3,000
|
|
|
|
Direct Materials
|
|
80
|
|
|
Conversion costs
|
|
60
|
|
|
Spoilage
|
200
|
|
|
|
Direct materials
|
|
100
|
|
|
Conversion costs
|
|
100
|
|
1) Prepare a production cost report using weighted-average costing.
2) Show the flow of costs through the WIP Inventory T-account.