1. Process Costs: Spoilage; FIFO and Weighted Average. (CPA adapted). The King Process Company manufacturers one product, processing it through two processesNo. I and No. 2.

For each unit of Process No. I output, 2 units of raw material X are put in at the start of the processing.

For each unit of Process No.2 output, 3 cans of raw material Y are put in at the end of processing.

Two pounds of Process No. I output are placed in at the start of Process No.2 for each unit of finished goods started.

Spoilage generally occurs in Process No. 2 when processing is approximately 50 percent complete.

Inprocess accounts are maintained for raw materials, conversion costs, and prior department costs.

The company uses FIFO basis for inventory valuation for Process No. I and finished goods, and average cost for inventory valuation for Process No.2.

Data for March:

1. Units transferred: From Process No. I to Process No.2 2,200

From Process No.2 to finished goods 900

From finished goods to cost of goods sold 600

2. Units spoiled in Process No. 2 100

3. Rawmaterial unit costs: X $1.51 per unit; Y $2.00 per can

4. Conversion costs: Process No. I $3,344; Process No.2 $4,010

5. Spoilage recovery: $ 100 (treated as cost reduction)

PROCESS NO.1 PROCESS NO.2 FIN GOODS

INITIAL FINAL INITIAL FINAL INITIAL FINAL

Units 200 300 200 300 700 1,000

Fraction complete

Conversion costs 1/2 1/3 1/2 2/3

Valuation: $13,300

Materials $560 0

Conversion costs $108 $390

Priordepartment costs $2,200

Required: Journalize March entries to record the transfer of costs from Process No.1 to Process No..2_ from Process No.2 to finished goods, and from finished goods to cost of goods sold. Prepare schedules of computations to support your entries. Regard spoilage as normal spoilage.