Chapter 19 Spoilage Rework and Scrap Question 5, TI19-2 (similar to) Part 1 of 7 HW Score: 8.33%, 1 of 12 points Points: 0 of 2 Save Overstitch Textiles Company makes silk banners and uses the FIFO method of process costing. 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. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. For each cost category, compute equivalent units. Enter the physical units in first, then calculate the equivalent units. (Complete all input fields. Enter a "0" for any zero amounts.) Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done in current period Physical Units Data table iv Work in process, (July 1)a Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31b Total costs added during July 2020 Physical Units (Banners) Direct Conversion Materials Costs 2,000 $9,000 $1,200 ? 10,800 220 40 1,700 $19,368 $31,710 aDegree of completion: direct materials 100%; conversion costs, 50% b Degree of completion: direct materials, 100%; conversion costs 30% Print Done