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Recreational Production, Inc. uses the weighted-average method to account for its production costs, and manufactures a sealant for wood decks in its Mixing Department. All

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Recreational Production, Inc. uses the weighted-average method to account for its production costs, and manufactures a sealant for wood decks in its Mixing Department. All manufacturing costs (including materials and conversions) are added uniformly. in the Mixing Department. Certain units of this product are found to be spoiled as a result of inspection that takes place at the 60 percent of the way through the process. Normal spoilage is 5 percent of the good units completed and any more extra is considered abnormal. The following information is available for the Mixing Department for the month of October: Work-in-Process, October 1 (80% complete)........ 1,200 units Units started in October. 13,800 units Good units completed and transferred-out ......... 13,000 units Work-in-process, October 31 (30% complete)...... 1,100 units Costs in beginning WIP.. $21,360 (including both materials and conversion) Costs added during October........... $228,300 (including both materials and conversion) Which of the following should appear in a journal entry to record the disposition of spoilage costs? Debit to Loss from Abnormal Spoilage for 7,020 Credit to Work-in-Process (Mixing) for 2,700 Credit to Work-in-Process (Mixing) for 9,720 Debit to Loss from Abnormal Spoilage for 9,720

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