Process costing

Philco Scuba uses a process costing system to account for the costs of two of its departments. The Sealing Department receives units from the Painting Department and applies conversion costs evenly throughout the process. Direct Materials are added when production is 70% complete. Inspection occurs when production is 90% complete. The following is additional information related to Sealing for the month of March, 2012: - 15,000 units were in process at the beginning of March, 2012. They were estimated to be 40% complete with respect to conversion costs. Costs associated with these units were as follows: Transferred-in costs (from Painting) - $125,000; and Sealing - conversion costs - $109,000 - During March 2012, 130,000 units were received from Painting at a cost of $980,000 - Actual costs incurred by Sealing during March were: Direct materials of $815,000; and Conversion costs of $1,335,000 -During March, 110,000 units were completed and transferred to finished goods. Total spollage in March amounted to 15,000 units. Normal spoilage is 12% of all good units that pass inspection during March - At the end of March, there were 20,000 units in process, which were estimated to be 60% complete with respect to conversion costs. - Philco uses the weighted average method of inventory accounting Required - Prepare the March 2012 production report for the Sealing Department WA Method Trans-In DM CC For the question above complete all required journal entries (dates and descriptions are not required). 7 A BIO WA Journal Entries Account Description DR CR