Problem

Silver Spoon Incorporated is a manufacturer of kitchen utensils. It produces all of its products in one department. The information for the current month is as follows:

Beginning work in process                                       40,000 units
Units started                                                          52,000 units
Units completed                                                      73,000 units
Ending work in process                                            16,000 units
Spoilage                                                                 3,000 units
Beginning work-in-process direct materials                 $30,000
Beginning work-in-process conversion                       $ 8,000
Direct materials added during month                         $126,400
Direct manufacturing labor during month                   $60,480

Beginning work in process was 25% complete as to conversion. Direct materials are added at the beginning of the process. Factory overhead is applied at a rate equal to 40% of direct manufacturing labor. Ending work in process was 60% complete. All spoilage is normal and is detected at the end of the process.

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