A company has two departments, a Machining department and a Finishing department. The following information relates to the Finishing Department: Work-in process, November 1, 2016, 20 units 40% completed, considering of $200 transferred-in costs, $340 direct materials, and $443 in conversion is 85% complete and conversion costs are incurred uniformly throughout the process. Normal spoilage is 8% of the total units completed. All spoilage is the result of defects and is detected when the process is 80% complete. Transferred-in costs from the Machine Department during November were $1,722: direct materials added were $1,420 while conversion costs incurred were $1,772. Work-in-process November 30, 2016 consisted of 14 units 65% completed as it relates to conversion costs

Required:

1.Prepare a Cost of Production Report for the month of November for the Finishing Department using Weighted Average method.

2. Record the journal entries required to a. Transfer the costs from the Finishing Department to Finishing Goods Inventory. b. Record the cost of Abnormal Spoilage(if any) to loss from abnormal spoilage

Finishing Department Physical Units 20 Transferred In $200 Direct Materials $340 Conversion $443 Work in Process November1 Units Transferred 104 in from Machining in November Good Units Transferred Out Work in Process November 30 Cost added in November 100 14 $1,722 $1,440 $1,772