The Donough Manufacturing Company uses a process cost system. In the second department, Department X, both spoiled units and defective units occur during operations. Inspection for spoiled units occurs when units are 70% complete. Direct materials are added at the end of the process.

Conversion costs are incurred evenly throughout the process.

Data pertaining to December’s activity in Department X is shown below:  lop5

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Units: Beginning units in process-90% complete. Units received from preceding department (Department W) Units transferred to next department.. Ending units in process.. Spoiled units: Normal. Abnormal Costs: Beginning work-in-process inventory From preceding department. Direct materials Direct labor Factory overhead (applied) Added during the period: Direct materials. Direct labor Factory overhead (applied). Rework costs for: Normal defective units: Direct labor Factory overhead (applied), Abnormal defective units: Direct labor Factory overhead (applied). Costs transferred in during the period from preceding department.. 17,000 38,000 40,000 75% complete 6,000 2,000 $ 9,000.00 0 5,290.00 3,500.50 37,000.00 30,005.00 15.052.00 1,317.00 1.279.00 898.00 526.00 48,750.00 Additional Information: The company's policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs. The company uses weighted average costing Required: a Prepare a cost of production report for Department X for December. b Prepare journal entries for Department X for December.