Standard-costing method. Refer to the information in Exercise 18-21. Suppose Anderson determines standard costs of $9.84 per (equivalent) unit for direct materials and $12.24 per

(equivalent) unit for conversion costs for both beginning work in process and work done in the current period.

18-24 Required Do Exercise 18-21 using the standard-costing method.

Equivalent units, equivalent unit costs, spoilage. (CMA, adapted) Consider the follow¬

ing data for November 2007 from the Grey Manufacturing Company, which makes silk pen¬

nants and operates 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 ofthe process. Spoiled units are disposed of at zero net disposal price.

Physical Units (Pennants)
Work in process, November 1* 1,000 Started in November 2007 ?
Good units completed and transferred out during November 2007 9,000 Normal spoilage 100 Abnormal spoilage 50 Work in process, November 30f 2,000 Costs added during November 2007 Direct Conversion Materials Costs $ 1,560 $ 1,500 $14,616 $33,300 ’Degree of completion: direct materials, 100%; conversion costs, 50%.
^Degree of completion: direct materials, 100%; conversion costs, 30%.
Required 1. Compute the equivalent units of work done in the current period for direct materials and conversion costs. Show physical units in the first column.
2. Calculate the cost per equivalent unit for direct materials and conversion costs.