The Skate Board Company Uses a Process Cost System for Making

question 83

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 using the weighted-average method of process costing. Recognize spoilage.
b. Prepare journal entries to record transferring out of cost from the work in process accounts.

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Definitions:

LES Instruction

A programming instruction used to compare if one value is less than another, often used in control and logic applications.

Register

A small, high-speed storage location within a computer or other digital processor used to hold temporary data or instructions.

Output

the result or product of a process, system, or activity, such as data from a computer program or electricity from a generator.

Location

The specific place or position where something is situated or where an event occurs.