Answer Happy

Consider the following data for November 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 price. Gray Manufacturing Company uses the weighted-average method of process costing. (Click the icon to view the data.) Required Compute the equivalent units of work done in the current period for direct materials and conversion costs. Show physical units in the first column of your schedule.

Data table Work in process, November 1³ Started during November Good units completed and transferred out during November Normal spoilage Abnormal spoilage Work in process, November 30¹ Total costs added during November b Physical Units (pennants) Print 1,350 ? *Degree of completion: direct materials, 100%; conversion costs, 50%. Degree of completion: direct materials, 100%; conversion costs, 10%. 9,500 160 40 1,700 Done Direct Conversion Materials Costs $3,448 $11,600 $571 $32,000 - X

Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Work done to date Physical Units Equivalent Units Direct Conversion Materials Costs