QUESTION 4 (30 minutes, 18 marks) Morton Inc. manufactures calculators. The calculators are assembled in the assembly department, and then transferred to the testing department. The weighted average method is used. In the assembly department, all direct materials are added at the beginning of the process and conversion costs are added evenly. The opening work-in-process is 60% complete and the ending work-in-process is 25% complete. Summary data, for the assembly department, for December, is as follows: December 1 CALCULATORS IN PROCESS CALCULATORS STARTED IN MONTH CALCULATORS STARTED & COMPLETED SPOILED CALCULATORS - normal SPOILED CALCULATORS - abnormal ENDING WORK IN PROCESS UNITS 1,000 5,000 4,500 100 200 ? COST OF WORK IN PROCESS December 1: MATERIALS CONVERSION COSTS ADDED DURING December: MATERIALS CONVERSION $9,000 $7,500 $45,000 $43,500 REQUIRED: 1 2 Prepare the journal entry to record the abnormal spoilage of the 200 calculators. Prepare the journal entry to record the transfer of costs from the assembly department TO the testing department. Calculate the detailed cost of the ending work in process inventory. 3