Problem
Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its products in one department. The information for the current month is as follows:
Beginning work in process 40,000 units
Units started 52,000 units
Units completed 73,000 units
Ending work in process 16,000 units
Spoilage 3,000 units
Beginning work-in-process direct materials $30,000
Beginning work-in-process conversion $ 8,000
Direct materials added during month $126,400
Direct manufacturing labor during month $60,480
Beginning work in process was 25% complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 40% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at the end of the process.
Required: Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used.