Venosis Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current month is as follows:

Beginning work in process 22,000 units
Units started 44,000 units
Units completed 55,000 units
Ending work in process 10,000 units
Spoilage 1,000 units

Beginning work-in-process direct materials $15,000
Beginning work-in-process conversion $ 6,000
Direct materials added during month $70,800
Direct manufacturing labor during month $37,400

Beginning work in process was half complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 50% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at end of the process.

Required:
Prepare a production cost worksheet if spoilage is recognized and the weighted-average method is used.

Answer: PRODUCTION COST WORKSHEET

Flow of Production Physical units Direct materials Conversion
Work in process, beginning 22,000
Started during period 44,000
To account for 66,000

Good units completed 55,000 55,000 55,000
Normal spoilage 1,000 1,000 1,000
Work in process, ending 10,000 10,000 6,000
Accounted for 66,000 66,000 62,000

Costs Totals Direct Materials Conversion
Work in process, beginning $ 21,000 $15,000 $ 6,000
Costs added during period 108,200 70,800 37,400

Total costs to account for 129,200 85,800 43,400
Divided by equivalent units 66,000 62,000
Equivalent unit costs $ 2.00 $ 1.30 $ 0.70

Assignment of costs
Costs transferred out (55,000 × $2.00) $ 110,000
Normal spoilage (1,000 × $2.00) 2,000
Work in process, ending
Direct materials (10,000 × $1.30) 13,000
Conversion (10,000 × $0.60 × 0.70) 4,200

Costs accounted for $129,200