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Question: The accountant at Cellular Advantage needs to

The accountant at Cellular Advantage needs to close the books at the end of January using the following information. Direct materials are added at the start of production. Conversion costs are incurred evenly throughout production. Inspection occurs when production is 75% completed. Normal spoilage is 13 200 units per month.
The accountant at Cellular Advantage needs to close the books at the end of January using the following information. Direct materials are added at the start of production. Conversion costs are incurred evenly throughout production. Inspection occurs when production is 75% completed. Normal spoilage is 13 200 units per month.


Required
(a)	Prepare a process cost report using the weighted average method.
(b)	Prepare a process cost report using the FIFO method.
(c)	Explain why an entity might specify limits for normal spoilage, after which spoilage is considered abnormal.
(d)	Reconstruct the work in progress and finished goods ledger accounts for this month.

Required (a) Prepare a process cost report using the weighted average method. (b) Prepare a process cost report using the FIFO method. (c) Explain why an entity might specify limits for normal spoilage, after which spoilage is considered abnormal. (d) Reconstruct the work in progress and finished goods ledger accounts for this month.





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Physical units Work in process, beginning (30% complete) Started during the month Total units to account for Good units completed and transferred out during current period: From beginning work in process Started and completed Total good units completed Spoiled units Work in process, ending (60% complete) Total units accounted for Costs Beginning inventory: Direct materials Conversion costs Total beginning inventory Costs added during current period: Direct materials Conversion costs Total costs to account for 22 000 148 000 170 000 22 000 100 000 122 000 16 000 32 000 170 000 $ 440 000 60 000 500 000 2 960 000 1884 000 $5 344 000


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