FIFO method, spoilage, equivalent units. Suppose Gray Manufacturing Company uses the FIFO method of process costing instead of the weighted average method. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
|
Physical Units (Pennants) |
Direct Materials |
Conversion Costs |
|
|
Work in process, November 1a |
1,000 |
$ 1,423 |
$ 1,110 |
|
Started in November 2012 |
? |
||
|
Good units completed and transferred |
|||
|
out during November 2012 |
9,000 |
||
|
Normal spoilage |
100 |
||
|
Abnormal spoilage |
50 |
||
|
Work in process, November 30b |
2,000 |
||
|
Total costs added during November 2012 |
$12,180 |
$27,750 |