Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials...

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Millennium Textiles Company makes silk banners and uses the weighted-average 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. Determine the equivalent units of work done in July Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Work in process, (July 1) Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 Physical Units (Banners) 1,200 ? 47,500 5,500 4,000 6,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% Print Done Direct Conversion Materials Costs $125,000 $8,000 $190,000 - X $28,000 Millennium Textiles Company makes silk banners and uses the weighted-average 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. Determine the equivalent units of work done in July Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Work in process, (July 1) Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 Physical Units (Banners) 1,200 ? 47,500 5,500 4,000 6,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% Print Done Direct Conversion Materials Costs $125,000 $8,000 $190,000 - X $28,000

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Answer Explanation Equivalent units Flow of production Physical units Direct materials Conversion co... View the full answer