(Normal and abnormal discrete spoilage; WA) Payne Tools manufactures one of its products in a two-department process. A separate work in process account is maintained for each department, and Payne Tools uses a weighted average pro¬ cess costing system. The first department is Forming; the second is Grinding. At the end of production in Grinding, a quality inspection is made and then packaging is added. Overhead is applied in the Grinding Department on a machine-hour basis. Production and cost data for the Grinding Department for October 1997 follow:

a. Prepare a cost of production report for the Grinding Department for October.

b. Prepare the journal entry to dispose of the cost of abnormal spoilage.LO1

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PRODUCTION DATA Beginning inventory (complete: labor, 30%; overhead, 40%) 2,000 units Transferred in from Forming 49,800 units Normal spoilage (discrete-found at the end of processing during quality control) 650 units Abnormal spoilage (found at end of processing during quality control) Ending inventory (complete: labor, 40%; overhead, 65%) Transferred to finished goods COST DATA Beginning inventory: Transferred in Material (label and package) Direct labor $ 6,050 0 325 Overhead 750 $ 7,125 Current period: Transferred in $149,350 Material (label and package) 11,760 Direct labor 23,767 Overhead 50,932 235,809 Total cost to account for $242,934 350 units 1,800 units ? units