P5.38Process costing with spoilage: journal entries: manufacturer L05.4 Steelworx Ltd accumulates costs for its single product using weighted average process costing. Direct material is added at the beginning of the production process, and conversion occurs uniformly throughout the process. All spoilage is detected at the quality inspection point, which occurs after production is 25 per cent complete. A partially completed production report for April follows: 228 PART TWO COSTS AND COS Production report, April Physical Percentage of completion material Conversicn units with respect to conversion Direct mat 65 10000 respect to conversion Dr Equvalert Work in process,1 April Units started during April Total units to account for 00 300000 Units completed and transferred out during April 220000 60000 20000 300000 Units spoiled during production Work in process, 30 April Total units accounted for 80% Total $ 82500 190400 $272900 Direct materialConversion Work in process, I April Costs incurred during April Total costs to account for $ 58500 1 14000 S172500 S 24000 76400 $100400 Required 1. Prepare a schedule of equivalent units for Steelworx. 2. Calculate the costs per eauivalent unit. 3. Calculate the cost of goods completed and transferred out during April. 4. Calculate the cost of spoiled units during April. 5. Calculate the cost remaining in the work in process inventory on 30 April. 6. Prepare journal entries to record the transfer of the cost of goods completed and transferred out during April, assuming: (a) spoiled units represent normal spoilage (b) spoiled units represent abnormal spoilage. 7. How would the production report above be different if the company used FIFO process costing