Question

Consider the following data for November 2017 from MacLean Manufacturing Company, which makes ik pennants and uses a process costing system. Al direct materials we 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 atero net disposal value. Suppose MacLean Manufacturing Company uses the FIFO method of process costing Click the icon to view the data) Data Table Read the requirement Enter the physical units in first, then all the juivalent units (Complete wwer boxes Entra for any amounts) Physical Units (Pennants) Direct Materials Conversion Costs $711 Physical Work in process November 1 Started in November 2017 Good units completed and transferred out during November 2017 8.800 $10.02 Work in process November 30 Total costs added during November 2017 Degree of completion directories 100% Degree of completion or www .co o 45 l, Flow of Production Work in process, beginning Started during current period To account for Good units completed and wansferred out during current per From beginning work in process Started and completed Normal plage Abnormal lage Work in process ending Accounted for Equivalent of work done in current period Print Done Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule Print Done any number in the sites and then click Check Answer Clear Al Check Awr

Answer 1

Prepare the schedule of physical units as shown below: Flow of Production Physical Units 1.350 9,280 10,630 Work in process, beginning Add: Started during current period (10.630 units - 1,350 units] To account for Good units completed and transferred out during current period: From beginning work in process Started and completed (8.800 units - 1.350 units] Normal spoilage Abnormal spoilage Work in process, ending Accounted for 1.350 7,450 80 50 1,700 10,630 Determine the equivalent units as shown below: Equivalent Units (FIFO Method) Direct Materials Conversion Costs Physical Units Details Degree of Completion [b] Equivalent units [c = a b] Equivalent units [e= ax d] 0% 1,350 7.450 80 Work in process, beginning Units started and completed Normal spoilage Abnormal spoilage Work in process, ending Total Equivalent Units Degree of Completion [d] 55% (100% - 45%] 100% 100% 100% 35% 100% 100% 100% 100% 743 7.450 80 50 595 8,918 7.450 80 50 1.700 9,280 50 1,700