Direct Material are added at the beginning of the process. Conversion costs are adding all during the manufacturing process. The manufa rejects 1% of the production for defects. Summary data for this period are as follows: WIP, Beginning Degree of completion, beginning WIP Started this period Physical Units Direct Material Conversion Costs 10,000 235,000 107,000 100% 50% 14,500 TOTAL UNITS TO ACCOUNT FOR: Good units completed and transferred 20,200 WIP, ending inventory 3,500 TOTAL UNITS ACCOUNTED FOR: Degree of completion of ending WIP Total costs added this period Normal spoliage as a % of good units Degree of completion of normal goods Degree of completion of abnormal goods Required: 100% 60% $ 450,000 $ 250,000 1.0% 1). Compute the units to account for, number of normal spoilage and number of abnormal spoilage. 2). Compute the Equivalent Units. 3). Compute the cost per unit and completed and transferred out of the process. 4). Compute the total costs to account for, compute cost per equivalent unit, and assign costs. Step 1: Determine the physical flow of Units Weighted average Costing WIP, Beginning Degree of completion, beginning WIP Started this period TOTAL UNITS TO ACCOUNT FOR: Physical Units Direct Material Good units completed and transferred WIP, ending inventory TOTAL UNITS ACCOUNTED FOR: Degree of completion of ending WIP Total costs added this period Step Two compute Spoilage: Identify the number of normal and abnormal spoilage Total Spoilage Normal Spoilage= = Abnormal Spoilage: 100% 100% 100% 100% Conversion Costs Total