Consider the following data for November 2014 from Walton Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of theprocess, 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. Walton Manufacturing Company uses the weighted-average method of process costing.

Requirement

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

Physical Units Direct Conversion (Pennants) Materials Costs S1,103 $711 Work in process, November 1a Started in November 2014 Good units completed and transferred out during November 2014 Normal spoilage Abnormal spoilage Work in process, November 30b Total costs added during November 2014 a Degree of completion: direct materials, 100%; conversion costs, 50%. b Degree of completion: direct materials, 100%; conversion costs, 35%. 9,200 100 20 1,900 $11,800$25,250