Question

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.

Answer 1

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