18-43. TRANSFERRED-IN COSTS, WEIGHTED-AVERAGE METHOD. Spelling Sports produces basketballs in two departments: cutting and stitching. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the stitching department.

After cutting, basketballs are immediately transferred to the stitching department. Direct material is added when the stitching process is 70% complete. Conversion costs are added evenly during stitching operations. After stitching is completed, basketballs are immediately transferred to Finished Goods.

Spelling Sports uses the weighted-average method of process costing. The following is a summary of the March 2020 operations of the stitching department:

Spreadsheet screenshot shows the physical units of basketballs, transferred-in costs, direct materials, and conversion costs of Spelling Sports for the month of March 2020.

Details of the spreadsheet are as follows:

Beginning work in process

Physical units of basketball: 17,500

Transferred-in costs: $ 45,360

Direct materials: $0

Conversion costs: $17,660

Degree of completion, beginning work in process

Transferred-in costs: 100%

Direct materials: 0%

Conversion costs: 20%

Transferred in during March 2020

Physical units of basketball: 56,000

Completed and transferred out during March 2020

Physical units of basketball: 52,000

Ending work in process, March 31

Physical units of basketball: 21,500

Degree of completion, ending work in process

Transferred-in costs: 100%

Direct materials: 0%

Conversion costs: 20%

Total costs added during March

Transferred-in costs: $154,560

Direct materials: $28,080

Conversion costs: $89,310.

Required

1. Summarize total stitching department costs for March 2020 and assign these costs to units completed (and transferred out) and to units in ending work-in-process inventory.

2. Prepare journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods.