FIFO method, spoilage. Refer to the information in Exercise 18-16.

Required Do Exercise 18-16 using the FIFO method of process costing.

Excel Application For students who wish to practise their spreadsheet skills, the following is a step-by-step approach to creating an Excel spreadsheet to work this problem.

Step-by-Step 1. Open a new spreadsheet. At the top, create an “Original Data” section for the Assembly Department data provided by Superchip. Enter the data for “Physical Units, Direct Materials,” and “Conversion Costs” in exactly the same format as above,..

(Program your spreadsheet to perform all necessary calculations. Do not “hard-code”

any amounts—such as equivalent-unit costs—requiring addition, subtraction, multiplica¬

tion, or division operations.)

2. Skip two rows and create a section, “Problem 1,” in the same format as in Panel A of Exhibit 18-3

(p. 717). Create columns for “Physical Units, Equivalent Units of Direct Materials and Equivalent Units of Conversion Costs” and rows for each of the items shown in Exhibit 18-3

(that is, the first row will be “Work in Process, Beginning” and the last row will be “Work Done in Current Period Only”). Use the data from your Original Data section to complete this section.

3. Skip two rows and create a section, “Problem 2,” in the same format as Step 3 of Exhibit 18-3, Panel B. Create columns for “Total Production Costs,” “Direct Alaterials, and Conversion Costs.”

4. Next, enter a calculation for the “Cost per Equivalent Unit ofWork Done in the Current Period” for Direct Materials and Conversion Costs.

5. Skip two rows and create a section, “Problem 3,” in the same format as Steps 4 and 5 of Exhibit 18-3, Panel B (using columns for “Total Production Costs,” “Direct Materials,”

and “Conversion Costs” created in Step 3).

6. Use the data you created in steps 1 to 4 to complete your “Problem 3” section.