Consider the following data for November 2014 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 process. Spoiled units are disposed of at zero net disposal value. Gray Manufacturing Company uses the weighted-average method of process costing.

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of yourschedule.

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Physical Units Direct Conversion (Pennants) Materials Costs 1,000 1,423 1,110 Work in process, November 1 Started in November 2014 Good units completed and transferred 9,000 out during November 2014 Normal spoilage Abnormal spoilage Work in process, November 30b Total costs added during November 2014 100 50 2,000 $12,10 $27,750 "Degree of completion: direct materials, 100%; conversion costs, 50%. be gree of completion: direct materials, 100%; conversion costs, 30%.