Chiplist 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. Chiplist uses the FIFO method of process costing. Summary data and weighted-average data for September 2017 are as follows:

	Physical Units (Computer Chips)	Direct Materials	Conversion Costs
Work in process, beginning inventory (September 1)	800	$ 157,088	$ 13,068
Degree of completion of beginning work in progress		100%	30%
Started during September	2,728
Good units completed and transferred out during September	2,400
Work in process, ending inventory (September 30)	480
Degree of completion of ending work in process		100%	15%
Total costs added during September		$ 583,792	$ 239,040
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%

	Total Production Costs	Direct Materials	Conversion Costs
Cost per equivalent unit for work done to date		$ 210.00	$ 81.00
Cost of units completed and transferred out	$ 803,160	$ 579,600	$ 223,560
Abnormal spoilage	83,808	60,480	23,328
Work in process, ending	106,632	100,800	5,832
Total costs accounted for	$ 993,600	$ 740,880	$ 252,720

1.	For each cost category, compute equivalent units. Show physical units in the first column of your schedule.
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.
3.	Should Chiplist's managers choose the weighted-average method or the FIFOmethod? Explain briefly.