The Skate Board Company uses a process cost system for making skateboard wheels. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the work in process is 40 percent complete and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process. Other data for the month include:
Beginning work in process costs:
Required:
a. Prepare a production cost worksheet using the FIFO method of process costing. Recognize spoilage.
b. Prepare journal entries to record transferring out of cost from the work in process accounts.

Question

The Skate Board Company uses a process cost system for making skateboard wheels. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the work in process is 40 percent complete and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process. Other data for the month include:
   Beginning work in process costs:
  Required:
a. Prepare a production cost worksheet using the FIFO method of process costing. Recognize spoilage.
b. Prepare journal entries to record transferring out of cost from the work in process accounts.

Quizplus · Accepted Answer

The Answer of The Skate Board Company uses a process cost system for making skateboard wheels. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the work in process is 40 percent complete and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process. Other data for the month include:
   Beginning work in process costs:
  Required:
a. Prepare a production cost worksheet using the FIFO method of process costing. Recognize spoilage.
b. Prepare journal entries to record transferring out of cost from the work in process accounts.

The Skate Board Company Uses a Process Cost System for Making