The Skate Board Company Uses a Process Cost System for Making

question 42

Essay

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 assuming that spoilage is recognized and the FIFO method is used.
b.Prepare journal entries to record transferring out of cost from the work-in-process accounts.

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Definitions:

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Reduced Blood Albumin

A medical condition where there is a lower than normal level of albumin in the blood, potentially indicative of liver or kidney disease, or malnutrition.

Esophageal Clearance

The process of removing food, liquid, or secretions from the esophagus to prevent aspiration and facilitate digestion.

Z-Track Method

A technique used in intramuscular injections to minimize leakage of the medication into the subcutaneous tissue and ensure full absorption.