Question

Consider the following data for November 2017 from Walton 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. Walton Manufacturing Company uses the weighted average method of process costing. i Data Table i Data Table Direct Materials $1,614 Conversion Costs $1,928 Equivalent Units Direct Conversion Materials Costs 8,700 110 Flow of Production Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending 8,700 Physical Units (Pennants) Work in process, November 19 1,300 Started in November 2017 Good units completed and transferred out during November 2017 8,700 Normal spoilage Abnormal spoilage Work in process, November 300 1,900 Total costs added during November 2017 Degree of completion direct materials, 100%; conversion costs, 45%. Degree of completion: direct materials, 100%; conversion costs, 25%. 110 70 70 1,900 $12,400 $31,750 10,780 9,355 Equivalent units of work done to date Print Done Done Print Done

Answer 1

Cost Summary
			Total	Direct	Conversion
			Costs	Materials	Costs
Beginning WIP			$   3,542.00	$   1,614.00	$   1,928.00
Added during November			$ 44,150.00	$ 12,400.00	$ 31,750.00
Total costs to account for			$ 47,692.00	$ 14,014.00	$ 33,678.00

Cost per equivalent units
			Direct	Conversion
Particulars			Materials	Costs
Total costs to account for			$ 14,014.00	$ 33,678.00
Equivalent units			10780	9355
Cost per equivalent units			$           1.30	$           3.60

					Total Prod.	Direct	Conversion
					Cost	Materials	Costs
Good units completed and transferred out
Costs before adding normal spoilage					$ 42,630.00	$ 11,310.00	$ 31,320.00
Normal spoilage					$      539.00	$      143.00	$      396.00
Total cost of good units comp. and trans. Out					$ 43,169.00
Abnormal spoilage					$      343.00	$        91.00	$      252.00
Ending WIP					$   4,180.00	$   2,470.00	$   1,710.00
					$ 47,692.00