Nouveaux Toys Inc., manufactures plastic rubber ducks. In June, Nouveaux reported the following data:

1. All direct materials are added at the beginning of the process.
2. Beginning work-in-process consisted of 3,000 units, 30 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $450; and conversion costs, $138.
3. Costs added to production during the month were direct materials, $950; and conversion costs, $2,174.50.
4. Inspection takes place at the end of the process. Malformed units are discarded. During normal operations, 0.5% of the units started will end up being malformed and discarded.
5. During the month, 7,000 units were started and 8,000 good units were transferred out to Finishing. All other units finished were malformed and discarded. There were 1,000 units that remained in ending work in process, 55 percent complete.
6. Remember to round your decimal points to four places for cost/EU rates.

Required:

1. Prepare a physical unit flow schedule.
2. Calculate the 1) cost of goods transferred out, 2) ending work-in-process, and 3) loss due to spoilage using the weighted average method.
3. Prepare the journal entries to record 1) and 3) above. Reconcile these journal entries with beginning work in process to ensure that ending work in process matches 2).
4. Calculate the 1) cost of goods transferred out, 2) ending work-in-process, and 3) loss due to spoilage using the FIFO method.
5. Prepare the journal entries to record 1) and 3) above. Reconcile these journal entries with beginning work in process to ensure that ending work in process matches 2).
6. Assume instead that inspection takes place when units are 40 percent complete. How does this change the number of units spoiled? How does this change the number of units that were abnormal spoilage v. normal spoilage?