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Compute equivalent units for direct materials and conversion cost

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(CMA,adapted) Consider the following data for November 2003 from Gray Manufacturing Company, which makes silk pennants and uses a process-costing system, All 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 prcoess. Spoiled units are disposed of at zero net disposal value. Gray Manufacturing Company uss the weighted-average method of process costing.

Physical Units Direct Conversion
(Pennants) Materials Costs
__________________________________________________________________________
Work in process, Nov. 1* 1,000 $1,423 $1,110
Started in Nov. 2003 ?
Good units completed and transferrred out
during November 2003 9,000
Normal spoilage 100
Abnormal spoilage 50
Work in process, November 30** 2,000
Costs added during November 2003 $12,180 $27,750
__________________________________________________________________________
*Degree of completion: direct materials, 100%; conversion costs, 50%
**Degree of completion: direct materials, 100%; conversion costs, 30%

Compute equivalent units for direct materials and conversion costs. Show physical units in the firs column of your schedule.

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The solution explains how to calculate the equivalent units

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4 managerial accounting questions

Chocolate Candies Company produces chocolate candy in large quantities. They have two departments, a Mixing department and a Packaging department. The manufacturing costs in the Mixing department during December were:

Direct Materials Added $200,000
Conversion Costs
Direct Labor $100,000
Factory Overhead $80,000 $180,000
Total Mixing Dept. Costs to Account For $380,000

Assume there was no beginning inventory in work in process. Also assume that 25,000 chocolates were started in the Mixing department during December. However, only 20,000 chocolates were started and fully completed and transferred to the Packaging department. The 5,000 units remaining in the Mixing department at the end of December were 100% complete with respect to Direct Materials, but only 25% complete with respect to conversion costs.

1. Compute the equivalent units for direct materials and conversion costs for December.

2. Compute the unit costs for direct materials and conversion costs.

3. Compute the cost of units completed for December.

4. Compute the cost of units in ending work in process for December

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