Intel 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. i Data Table Enter the physical units in first, then calculate the equivalent units. (Complete all answer boxes. Ento Equivalent Units Direct Conversion Materials Costs Physical Units 6000 Direct Materials $2,200 Conversion Costs $2,100 Flow of Production Work in process beginning Started during current period Physical Units (Banners) Work in process, (July 1) 6,000 Started in July 2017 Good units completed and transferred out in July 9,000 Normal spoilage 4,500 Abnormal spoilage 3,500 Work in process, July 31 19,000 Total costs added during July 2017 Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion direct materials, 100%; conversion costs 50% $15,000 $28,200 To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spolage Abnormal spoilage Work in process, ending Print Done Accounted for Equivalent units of work done in current period Summarize total costs to account for calculate the cost per equivalent unit for each cost category, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Summarize total costs to account for; calculate the cost per equivalent unit for each cost category; and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs 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 Finally, assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (Complete all answer boxes. Enter a "0" for any zero amounts.) Total Direct Conversion Production Costs Materials Costs Completed and transferred out: Total from beginning inventory before normal spoilage Total costs of units completed and transferred out Total costs accounted for Intel 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. i Data Table Enter the physical units in first, then calculate the equivalent units. (Complete all answer boxes. Ento Equivalent Units Direct Conversion Materials Costs Physical Units 6000 Direct Materials $2,200 Conversion Costs $2,100 Flow of Production Work in process beginning Started during current period Physical Units (Banners) Work in process, (July 1) 6,000 Started in July 2017 Good units completed and transferred out in July 9,000 Normal spoilage 4,500 Abnormal spoilage 3,500 Work in process, July 31 19,000 Total costs added during July 2017 Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion direct materials, 100%; conversion costs 50% $15,000 $28,200 To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spolage Abnormal spoilage Work in process, ending Print Done Accounted for Equivalent units of work done in current period Summarize total costs to account for calculate the cost per equivalent unit for each cost category, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Summarize total costs to account for; calculate the cost per equivalent unit for each cost category; and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs 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 Finally, assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (Complete all answer boxes. Enter a "0" for any zero amounts.) Total Direct Conversion Production Costs Materials Costs Completed and transferred out: Total from beginning inventory before normal spoilage Total costs of units completed and transferred out Total costs accounted for
