2. Consider the following data for November 2017 from Gannett Manufacturing Company, which makes sik 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. Gannett Manufacturing Company uses the weighted average method of process costing. (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units Physical Units Equivalent Units Direct Conversion Materials Costs 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 Equivalent units of work done to date Direct Materials $1,032 Conversion Costs $740 1: Data Table Physical Units Pennants) Work in process, November 1" 1,050 Started in November 2017 Good units completed and transferred out during November 2017 8.900 Normal spoilage Abnormal spoilage Work in process, November 30 1,800 Total costs added during November 2017 "Degree of completion direct materials, 100% conversion costs, 45% Degree of completion direct materials. 100conversion costs. 18 120 $12,000 $27.250