Weighted-average method, spoilage. Lang Manufacturing Company uses the weighted-

average method of process costing. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoiled units are detected upon inspection at the end of the process and are disposed of at zero net disposal value.

Summary data for March 2010 are

REQUIRED 1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule.
2. For each cost category, calculate cost per equivalent unit.
3. Summarize total costs to account for, and assign these costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.LO1

Transcribed Image Text:

Physical Units Direct Conversion Materials Costs Work in process, March 1* 30,000 $288,000 $216,000 Started during March 2010 50,000 Good units completed and transferred out during March 2010 40,000 Normal spoilage 6,000 Abnormal spoilage 2,000 Work in process, March 31+ 32,000 Total costs added during March 2010 $504,000 $699,840