Novel Toys, Inc., manufactures plastic water guns. Each gun's left and right frames are produced in the Molding Department. The left and right frames are then transferred to the Assembly Department where the trigger mechanism is inserted and the halves are glued together. (The left and right halves together define the unit of output for the Mold¬

ing Department.) In June, the Molding Department reported the following data:

a. In Molding, all materials are added at the beginning of the process.

b. Beginning work in process consisted of 3,000 units, 20% complete with respect to labor and overhead. Cost in beginning inventory included direct materials, $450; and con¬

version cost, $138.

c. Costs added to production during the month were direct materials, $950; and conver¬

sion costs, $2,174.50.

d. Inspection takes place at the end of the process. Malformed units are discarded. All spoilage is considered abnormal.

e. During the month, 7,000 units were started and 8,000 good units were transferred out to Finishing. All other units finished were malformed and discarded. There were 1,000 units that remained in ending work in process, 25% complete.

Required:

1. Prepare a physical flow schedule.

2. Calculate equivalent units of production using the weighted average method.

3. Calculate the unit cost.

4. What is the cost of goods transferred out? Ending work in process? Loss due to spoilage?

5. Prepare the journal entry to remove spoilage from the Molding Department.