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Category > Accounting Posted 25 Sep 2017 My Price 7.00

Gray Manufacturing Company

Weighted-average method, spoilage, equivalent units. (CMA, adapted) Consider the following data for November 2012 from Gray 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. Gray Manufacturing Company uses the weighted-average method of process costing.

 

Physical Units (Pennants)

Direct Materials

Conversion Costs

Work in process, November 1a

1,000

$ 1,423

$ 1,110

Started in November 2012

?

    

Good units completed and transferred

      

out during November 2012

9,000

    

Normal spoilage

100

    

Abnormal spoilage

50

    

Work in process, November 30b

2,000

    

Total costs added during November 2012

  

$12,180

$27,750

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

Answers

Maurice Tutor
(5)
Status NEW Posted 25 Sep 2017 03:09 PM My Price 7.00

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