Chapter 18, Problem 18.24E

FIFO method, assigning costs (continuation of 18-23).

Required

For the data in Exercise 18-21, use the FIFO method to summarize the total costs to account for; calculate the cost per equivalent unit for direct materials and conversion costs; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

18-21 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.

^a Degree of completion: direct materials, 100%; conversion costs, 45%.

^b Degree of completion: direct materials, 100%; conversion costs, 35%.