a. Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its products in one department. The information for the current month is as follows:

Beginning work in process 37,500 units

Units started 55,000 units

Units completed 75,000 units

Ending work in process 14,500 units

Spoilage 3,000 units

Beginning work-in-process direct materials $25,000

Beginning work-in-process conversion $ 10,000

Direct materials added during month $113,750

Direct manufacturing labor during month $40,020

Beginning work in process was 25% complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 37.5% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at the end of the process.

Required:

Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used. (3 marks)

Why is cost accumulation easier under a process costing system than under a job order costing system? Discuss and use examples to support your discussion. (2 marks)