CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-17 (20 min.) Weighted-average method, spoilage, equivalent units. Solution Exhibit 18-17 calculates equivalent units of work done to date for direct materials and conversion costs. SOLUTION EXHIBIT 18-17 Summarize Output in Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing with Spoilage, Gray Manufacturing Company for November 2012. (Step 1) (Step 2) Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process, beginning (given) 1,000 Started during current period 10,150a To account for 11,150 Good units completed and transferred out during current period: 9,000 9,000 9,000 Normal spoilage* 100 100 100%; 100 100% 100 100 Abnormal spoilage† 50 50 100%; 50 100% 50 50 Work in process, ending‡ (given) 2,000 2,000 100%; 2,000 30% 2,000 600 Accounted for 11,150 Equivalent units of work done to date 11,150 9,750 a From 11,150 total units are accounted for. Therefore, units started during current period must be = 11,150 1,000 = 10,150. – *Degree of completion of normal spoilage in this department: direct materials, 100%; conversion costs, 100%. of completion of abnormal spoilage in this department: direct materials, 100%; conversion costs, 100%. †Degree of completion in this department: direct materials, 100%; conversion costs, 30%. ‡Degree 18-18 (2025 min.) Weighted-average method, assigning (continuation of 18-17). Solution Exhibit 18-18 summarizes total costs to account for, calculates the costs per equivalent unit for direct materials and conversion costs, and assigns total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. SOLUTION EXHIBIT 18-18 Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed, to Spoiled Units, and to Units in Ending Work in Process; Weighted-Average Method of Process Costing, Gray Manufacturing Company, November 2012. Total Production Direct Conversion
CHAPTER 18 SPOILAGE, REWORK, AND SCRAP 18-17 (20 min.) Weighted-average method, spoilage, equivalent units. Solution Exhibit 18-17 calculates equivalent units of work done to date for direct materials and conversion costs. SOLUTION EXHIBIT 18-17 Summarize Output in Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing with Spoilage, Gray Manufacturing Company for November 2012. (Step 1) (Step 2) Equivalent Units Flow of Production Physical Units Direct Materials Conversion Costs Work in process, beginning (given) Started during current period To account for Good units completed and transferred out during current period: Normal spoilage* 100 100%; 100 100% Abnormal spoilage† 50 100%; 50 100% Work in process, ending‡ (given) 2,000 100%; 2,000 30% Accounted for Equivalent units of work done to date 1,000 10,150a 11,150 9,000 100 50 2,000 11,150 9,000 100 50 2,000 11,150 9,000 100 50 600 9,750 a From 11,150 total units are accounted for. Therefore, units started during current period must be = 11,150 – 1,000 = 10,150. *Degree of completion of normal spoilage in this department: direct materials, 100%; conversion costs, 100%. †Degree of completion of abnormal spoilage in this department: direct materials, 100%; conversion costs, 100%. ‡Degree of completion in this department: direct materials, 100%; conversion costs, 30%. 18-18 (2025 min.) Weighted-average method, assigning (continuation of 18-17). Solution Exhibit 18-18 summarizes total costs to account for, calculates the costs per equivalent unit for direct materials and conversion costs, and assigns total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. SOLUTION EXHIBIT 18-18 Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed, to Spoiled Units, and to Units in Ending Work in Process; Weighted-Average Method of Process Costing, Gray Manufacturing Company, November 2012. Total Production Direct Conversion
sol-CH18.docx