Ottawa Manufacturing is a furniture manufacturer and uses a process cost system. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of March the work-in-process is 40 percent complete and at the end of the month it is 60 percent complete. Spoilage is detected at the end of the process. Other data for the month include:

Beginning work-in-process inventory 1,600 units

Units started 20,000 units

Units placed in finished goods 12,000 units

Ending work-in-process inventory 1,200 units

Normal spoilage % on all units finished 20 percent

Conversion costs $40,320

Cost of direct materials $40,000

Beginning work-in-process costs:

Materials $4,000

Conversion $4,032

Required:

a) Using the weighted-average method, summarize total costs and assign these costs to units completed (and transferred out), normal spoilage, abnormal spoilage, and to units in ending inventory.

b) Prepare journal entries to record transferring out of costs from the work-in-process accounts.