Question

# Weighted-average method, spoilage, equivalent units. (CMA adapted) Consider the following data for November 2017 from MacLean...

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 Direct Conversion (Pennants) Materials Costs Work in Process, November 1 1350 \$966 \$711 Started Nov 2017 Good Units completed; transferred 8800 Out during Nov. 2017 Normal Spoilage 80 Abnormal Spoilage 50 Work in process 11/30 1700 Total Costs added during Nov. 17 \$10,302 \$30,055 a) Degree of completion: direct materials, 100%; conversion costs, 45%. b) Degree 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.

Sollution

 Flow Of Production Physical Unit Work In process Beginning 1350 Add:- Started during current period (10630-1350) 9280 To Account For 10630 Good unit completed and transferred out during current period from Beginning work in process +Started And Completed 8800 Normal Spoilage 80 Abnormal Spoilage 50 work in process Ending 1700 Accounted for 10630
 MacLean Manufacturing Company Equivalent units of production (EUP) - Weighted Average method Detail Physical Units %Material EUP-Material % Conversion EUP- Conversion Units Transferred Out 8800 100% 8800 100% 8800 Normal Spoilage 80 100% 80 100% 80 Abnormal Spoilage 50 100% 50 100% 50 units of Ending work in process 1700 100% 1700 35% 595 Equivalent units of production 10630 9525

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