Question

E18-23 (similar to) Question Help Consider the following data for November 2017 from Mundy 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. Suppose Mundy Manufacturing Company uses the FIFO method of process costing (Click the icon to view the data.) Read the ruinment

Answer 1

Pg No-0 Solution :- Given data: Direct material work in physical units 1200 process NOVI Conversion Cost $111 $1,103 Started in Nov 2017 • Good units Transfered out completed and during Nov 2017 9200 IDD Normal Spoilage Abnormal spoilage 20 working in process Nov 30 1900 Total Cost added during Nov 2017 13,026 26,446 physical units EUR- material EUP conversion 1200 working → Started process Begining during current 10020 period 11220 → To account for Good units completed & Transfered out during current period: from Begining work 1 in process 1200* 45% 1200 = 540

8000 8000 8000 100 100 100 - started and completed - Normal Spoilage - Abnormal spoilage work in process Ending 20 1900 1900 1900 x 35 = 665 → Accounted for 11220 10020 → Equivalent units of work done in Current period 9325