1. Complete a production report for CMA Ltd.

2. Prepare journal entries to record the transfer of the cost of goods completed and transferred out during April, assuming:

a. All spoiled units represent normal spoilage

b. All spoiled units represent abnormal spoilage.

3. How would the production report differ if CMA adopted a weighted average process costing system?

CMA Ltd accumulates costs for its single product using weighted average process costing. Direct material is added at the beginning of the production process, and conversion occurs uniformly throughout the process. All spoilage is detected at the quality inspection point, which occurs after production is 25 per cent complete. CMA uses a FIFO process costing approach to determine the cost of its products. For the purposes of the report ALL SPOILAGE IS CONDSIDERED TO BE NORMAL A partially completed production report for April follows: Production report, April Physical units Percentage of completion with respect to conversion 60% 100,000 200.000 300,000 Work in process, 1 April Units started during April Total units to account for Units completed and transferred out during April Units spoiled during production Work in process, 30 April Total units accounted for 220,000 60,000 20,000 300.000 80% Work in Process, 1 April Costs incurred during April Total Costs to Account for Direct Materials $58,500 114,000 $172,500 Conversion $24,000 76,400 $100,400 Total $82,500 190,400 $272,900