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 FIFO method of process costing E (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Data Table i X - Data Table Full-screen Snip Equivalent Units Direct Conversion Materials Costs Direct Materials $1,614 Conversion Costs $1,928 Flow of Production 520 Physical Units (Pennants) Work in process, November 18 1,300 Started in November 2017 Good units completed and transferred out during November 2017 8,700 Normal spoilage 110 Abnormal spoilage 70 Work in process, November 30 1,900 Total costs added during November 2017 Degree of completion direct materials, 100%; conversion costs, 60%. Degree of completion: direct materials, 100%; conversion costs, 25% 7,400 Good units completed and transferred out during current period: From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending 7,400 110 110 70 $11,376 $27,440 1,900 475 9,480 8,575 Work done in current period only Print Done

Answer 1

	Total	Direct	Conversion
	Production Costs	Materials	Costs
Cost of beginning work in process	3542	1614	1928
Costs added during November	38816	11376	27440
Total costs to account for	42358	12990	29368
		Direct	Conversion
		Materials	Costs
Costs added during November		11376	27440
Divide by: Equivalent units		9480	8575
Cost per equivalent unit		1.20	3.20
	Total	Direct	Conversion
	Production Costs	Materials	Costs
Completed and transferred out
Goods in beginning work in process	3542	1614	1928
Goods completed in beginning work in process	1664	0	1664
Total from beginning inventory before normal spoilage	5206	1614	3592
Started and completed	32560	8880	23680
Normal spoilage	484	132	352
Total costs of units completed and transferred out	38250	10626	27624
Ending work in process	3800	2280	1520
Abnormal spoilage	308	84	224
Total costs accounted for	42358	12990	29368