Weighted-average method, spoilage, equivalent units. (CMA, adapted) Consider the fol- lowing data for November 2010 from Grey 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. Grey Manufacturing Company uses the weighted-average method of process costing.

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.LO1

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Work in process, November 1* Started during November 2010 Good units completed and transferred Physical Units (pennants) Direct Conversion Materials Costs 1,000 $ 1,423 $ 1,110 out during November 2010 9,000 Normal spoilage 100 Abnormal spoilage 50 Work in process, November 30+ 2,000 Total costs added during November 2010 $12,180 $27,750