SPOILAGE AND DEFECTIVE UNITS: ONE DEPARTMENT USING WEIGHTED AVERAGE COSTING AND JOURNAL ENTRIES The Donough Manufacturing Company uses a process cost system. In the second depart- ment, Department X, both spoiled units and defective units occur during operations. In- spection for spoiled units occurs when units are 70% complete. Direct materials are added at the end of the process. Conversion costs are incurred evenly throughout the process. Data pertaining to December's activity in Department X are shown below: Units: Beginning units in process-90% complete... 17,000 Units received from preceding department (Department W) 38,000 Units transferred to next department 40,000 Ending units in process 75% complete Spoiled units: Normal... 6,000 Abnormal 2,000 Costs: Beginning work-in-process inventory From preceding department $9,000.00 Direct materials 0 Direct labor 5,290.00 Factory overhead (applied) 3,500.50 Added during the period: Direct materials 37,000.00 Direct labor 30,005.00 Factory overhead (applied) 15,052.00 Rework costs for: Normal defective units: Direct labor 1,317.00 Factory overhead (applied) 1,279.00 Abnormal defective units: Direct labor 898.00 Factory overhead (applied) 526.00 Costs transferred in during the period from preceding department 48,750.00 Additional information: The company's policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs. The company uses weighted average costing. Required: a Prepare a cost of production report for Department X for December b Prepare journal entries for Department X for December SPOILAGE AND DEFECTIVE UNITS: ONE DEPARTMENT USING WEIGHTED AVERAGE COSTING AND JOURNAL ENTRIES The Donough Manufacturing Company uses a process cost system. In the second depart- ment, Department X, both spoiled units and defective units occur during operations. In- spection for spoiled units occurs when units are 70% complete. Direct materials are added at the end of the process. Conversion costs are incurred evenly throughout the process. Data pertaining to December's activity in Department X are shown below: Units: Beginning units in process-90% complete... 17,000 Units received from preceding department (Department W) 38,000 Units transferred to next department 40,000 Ending units in process 75% complete Spoiled units: Normal... 6,000 Abnormal 2,000 Costs: Beginning work-in-process inventory From preceding department $9,000.00 Direct materials 0 Direct labor 5,290.00 Factory overhead (applied) 3,500.50 Added during the period: Direct materials 37,000.00 Direct labor 30,005.00 Factory overhead (applied) 15,052.00 Rework costs for: Normal defective units: Direct labor 1,317.00 Factory overhead (applied) 1,279.00 Abnormal defective units: Direct labor 898.00 Factory overhead (applied) 526.00 Costs transferred in during the period from preceding department 48,750.00 Additional information: The company's policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs. The company uses weighted average costing. Required: a Prepare a cost of production report for Department X for December b Prepare journal entries for Department X for December