Weighted-average method, spoilage. 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 2010 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, Sei is a and assign total costs to units completed and transferred out (including normal spoilage), to eco neue abnormal spoilage, and to units in ending work in process.
nea it : See ;LO1

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