Chipcity Inc. is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. Chipcity uses the weighted-average method of process costing.

Summary data for September 2015 are:

Required
1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule.
2. Summarize total costs to account for, calculate cost per equivalent unit for each cost category, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work-in-process.

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Physical Units (computer chips) 600 Direct Materials $96,000 Conversion Costs $ 15,300 Work-in-process, beginning inventory (Sept. 1) Degree of completion of beginning WIP Started during September Good units completed and transferred out 100% 5% 2,550 2,100 450 during September Work-in-process, ending inventory (Sept 30) Degree of completion of ending WIP Total costs added during September Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% 40% $567,000 $230,400 15% 100% 100% 100% 100%