Cranbrook Textiles Company makes silk banners and uses the weighted-average 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.

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.

Direct Materials $110,000 Conversion Costs $2,000 Physical Units (Banners) Work in process, (July 199 1,400 Started in July 2017 ? Good units completed and transferred out in July 50,000 Normal spoilage 4,000 Abnormal spoilage 6,000 Work in process, July 316 5,000 Total costs added during July 2017 Degree of completion: direct materials 100%; conversion costs, 50% "Degree of completion: direct materials, 100%; conversion costs 50% $150,000 $28,000 Determine the equivalent units of work done in July. 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 Summarize the total costs to account for compute the cost per equivalent unit, and assign costs to the units completed, spoiled units, and units in ending work-in-process inventory. Begin by summarizing the total costs to account for Direct Conversion Production Costs Materials Costs Total Total costs to account for Next, calculate cost per equivalent unit for each cost category. (Enter your answers to the nearest cent.) Direct Conversion Materials Costs Divide by: Cost per equivalent unit for work done to date Direct Conversion Finally, assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Total Production Costs Materials Costs Good units completed and transferred out Total cost of good units completed and transferred out Total costs accounted for