18-25 Weighted-average method, spoilage. LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At LaCroix's facility in northeast Ohio, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero. LaCroix uses the weighted-average method of process costing. Summary data for April 2017 are as follows: Home Insert Page Layout Formulas Data Review View B C Physical Direct D Conversion 1 Units Materials Costs 2 Work in process, beginning inventory (April 1) 2,400 $21,240 $ 13,332 3 Degree of completion of beginning work in process 100% 50% 4 Started during April 12,000 5 Good units completed and transferred out during April 10,800 6 Work in process, ending inventory (April 30) 2,160 7 Degree of completion of ending work in process 100% 75% 8 Total costs added during April $97,560 $111,408 9 Normal spoilage as a percentage of good units 10% 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 100% 100% 100% 100% 1. For each cost category, calculate equivalent units. Show physical units in the first column of your schedule. Required 2. Summarize the total costs to account for; calculate the cost per equivalent unit for each cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. 18-25 Weighted-average method, spoilage. LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At LaCroix's facility in northeast Ohio, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero. LaCroix uses the weighted-average method of process costing. Summary data for April 2017 are as follows: Home Insert Page Layout Formulas Data Review View B C Physical Direct D Conversion 1 Units Materials Costs 2 Work in process, beginning inventory (April 1) 2,400 $21,240 $ 13,332 3 Degree of completion of beginning work in process 100% 50% 4 Started during April 12,000 5 Good units completed and transferred out during April 10,800 6 Work in process, ending inventory (April 30) 2,160 7 Degree of completion of ending work in process 100% 75% 8 Total costs added during April $97,560 $111,408 9 Normal spoilage as a percentage of good units 10% 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 100% 100% 100% 100% 1. For each cost category, calculate equivalent units. Show physical units in the first column of your schedule. Required 2. Summarize the total costs to account for; calculate the cost per equivalent unit for each cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.