Cranbrook Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. E (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. - X Data table Physical Units Direct Conversion Enter the physical units in first, then calculate the equivalent units. |(Banners) 1,300 Materials Costs $8,000 $195,000 Work in process, (July 1)" Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 ? Physical Flow of Production 37,500 20,500 9,000 Units Work in process beginning 16,000 Started during current period $220,000 $28,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Print Done Accounted for Equivalent units of work done to date
Cranbrook Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. E (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. - X Data table Physical Units Direct Conversion Enter the physical units in first, then calculate the equivalent units. |(Banners) 1,300 Materials Costs $8,000 $195,000 Work in process, (July 1)" Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 ? Physical Flow of Production 37,500 20,500 9,000 Units Work in process beginning 16,000 Started during current period $220,000 $28,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Print Done Accounted for Equivalent units of work done to date
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Cranbrook Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is
detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value.
(Click the icon to view the process costing data.)
Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory.
- X
Data table
Physical Units
Direct
Conversion
Enter the physical units in first, then calculate the equivalent units.
(Banners)
Materials
Costs
1,300
$195,000
$8,000
Work in process, (July 1)"
Started in July 2020
Good units completed and transferred out in July
Normal spoilage
Abnormal spoilage
Physical
37,500
20,500
9,000
Flow of Production
Units
Work in process beginning
Work in process, July 31°
Total costs added during July 2020
16,000
Started during current period
$220,000
$28,000
Degree of completion: direct materials 100%; conversion costs, 50%
"Degree of completion: direct materials, 100%; conversion costs 50%
To account for
Completed and transferred out during current period
Normal spoilage
Abnormal spoilage
Work in process, ending
Print
Done
Accounted for
Equivalent units of work done to date
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