Consider the following data for November 2015 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 value. Grey Manufacturing Company uses the FIFO method of process costing.

Required

Summarize total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

Direct Conversion Materials $1,423 Costs $1,110 Physical Units (pennants) Work in process, November 18 1,000 Started during November 2015 ? Good units completed and transferred out during November 2015 9,000 Normal spoilage 100 Abnormal spoilage 50 Work in process, November 30b 2,000 Total costs added during November 2015 a Degree of completion: direct materials, 100%; conversion costs, 50%. bDegree of completion: direct materials, 100%; conversion costs, 30%. $12,180 $27,750 Equivalent Units Direct Conversion Materials Costs 0 500 Flow of Production Good units completed and transferred out during current period: From beginning work in process Started and completed Normal spoilage Abnormal spoilage 8,000 8,000 100 100 50 50 2,000 Work in process, ending 600 10,150 9,250 Work done in current period only