Question

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 1a	1,350	$966	$711
Started in November 2017	​?
Good units completed and transferred out     during November 2017	8,800
Normal spoilage	80
Abnormal spoilage	50
Work in​ process, November 30b	1,700
Total costs added during November 2017		$10,302	$30,055

a Degree of​ completion: direct​ materials, 100%; conversion​ costs, 45%.
b Degree of​ completion: direct​ materials, 100​%; conversion​ costs, 35​%

	Equivalent Units
Flow of production	Direct Materials	Conversion Cost
Completed and transferred out during current period	8,800	8,800
Normal Spoilage	80	80
Abnormal Spoilage	50	50
Work in process, Ending	1,700	595
Equivalent units of work done to date	10,630	9,525

Begin by summarizing the total costs to account for.

Total

Direct

Conversion

Production Costs

Materials

Costs

Work in process, beginning

Total costs to account for

​Next, calculate cost per equivalent unit for direct materials and conversion costs. ​(Round your answers to the nearest​ cent.)

		Direct	Conversion
		Materials	Costs
Divide by:
Cost per equivalent unit for work done to date

​Finally, assign costs to units completed and transferred out​ (including normal​ spoilage), to abnormal​ spoilage, and to units in ending work in process. ​(Round your answers to the nearest whole​ dollar.)

		Total	Direct	Conversion
		Production Costs	Materials	Costs
Good units completed and transferred out
Total cost of good units completed and transferred out
Total costs accounted for

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

	Total production costs	direct materials	conversion costs
Work in process beginning	1677	966	711
Costs added in current period	40357	10302	30055
Total costs to account for	42034	11268	30766
Costs incurred to date		11268	30766
Divide by Equivalent units of work done to date		10630	9525
Cost per equivalent unit		$1.06	$3.23
Assignment of costs
Good units completed and transferred out (8800 units)
Costs before adding normal spoilage	37752	9328 (8800*1.06)	28424 (8800*3.23)
Normal spoilage	343	85 (80*1.06)	258 (80*3.23)
Total cost of good units completed & transf. out (a)	38095	9413	28682
Abnormal spoilage (b)	215	53 (50*1.06)	162 (50*3.23)
Work in process ending (c)	3724	1802 (1700*1.06)	1922 (595*3.23)
Total costs accounted for	42034	11268	30766