31. (Normal and abnormal discrete spoilage; WA) Brendan Tools manufactures one of its products in a two-department
Question:
31. (Normal and abnormal discrete spoilage; WA) Brendan Tools manufactures one of its products in a two-department process. A separate Work in Process account is maintained for each department, and Brendan Tools uses a weighted average process costing system. The first department is Molding; 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 August 2000 follow:
a. Prepare a cost of production report for the Grinding Department for August.
b. Prepare the journal entry to dispose of the cost of abnormal spoilage.
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780324180909
5th Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney