Physical Units (Pennants) Direct Materials Conversion Costs $ 711 Work in process, November 1ª Started in November 2017 1,350 $ 966 Good units completed and transferred out during November 2017 Normal spoilage Abnormal spoilage Work in process, November 30b Total costs added during November 2017 8,800 80 50 1,700 $10,302 $30,055 "Degree of completion: direct materials, 100%; conversion costs, 45%. bDegree of completion: direct materials, 100%; conversion costs, 35%. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Required

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Weighted-average method, spoilage, equivalent units. (CMA, adapted) Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All 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. MacLean Manufacturing Company uses the weighted-average method of process costing.

Physical Units
(Pennants)
Direct
Materials
Conversion
Costs
$ 711
Work in process, November 1ª
Started in November 2017
1,350
$ 966
Good units completed and transferred
out during November 2017
Normal spoilage
Abnormal spoilage
Work in process, November 30b
Total costs added during November 2017
8,800
80
50
1,700
$10,302
$30,055
"Degree of completion: direct materials, 100%; conversion costs, 45%.
bDegree of completion: direct materials, 100%; conversion costs, 35%.
Compute equivalent units for direct materials and conversion costs. Show physical units in the first column
of your schedule.
Required
Transcribed Image Text:Physical Units (Pennants) Direct Materials Conversion Costs $ 711 Work in process, November 1ª Started in November 2017 1,350 $ 966 Good units completed and transferred out during November 2017 Normal spoilage Abnormal spoilage Work in process, November 30b Total costs added during November 2017 8,800 80 50 1,700 $10,302 $30,055 "Degree of completion: direct materials, 100%; conversion costs, 45%. bDegree of completion: direct materials, 100%; conversion costs, 35%. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Required
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