Millstream Company makes wooden toys in its forming department, and it uses the weighted-average method of process costing. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal value. Summary data for August 2015 are as follows:

Required
1. For each cost category, calculate equivalent units. Show physical units in the first column of your schedule.
2. Summarize total costs to account for, calculate cost per equivalent unit for each cost category, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work-in-process.

Transcribed Image Text:

PhysicalDi Conversion Units Materials 2,000$17,700$10,900 2 Work-in-process, beginning inventory (August 1) 3 Degree of completion of beginning work-in-process 4 Started during August 5 Good units completed and transferred out during August9 5 Work-in-process, ending inventory (August 31) 50% 10,000 9,000 1,800 13% $81,300$93,000 100% Degree of completion of ending work-in-process 8 Total costs added during August 9 Normal spoilage as a percentage of good units 10% Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 100% 100% 100% 100%