Weighted-average method, spoilage. Wang 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 2007 are Physical Direct Conversion Units Materials Costs Work in process, March la 30,000 $288,000 Started in March 2007 50,000 Good units completed and transferred out during March 2008 40,000 Normal spoilage 6,000 Abnormal spoilage 2,000 Work in process, March 3 lb 32,000 Costs added during March 2008 $504,000

$216,000

$699,840 aDegree of completion: direct materials, 100%; conversion costs, 60%.

bDegree of completion: direct materials, 100%; conversion costs, 75%.

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.

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.