Chipster 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. Suppose Chipster determines standard costs of $210 per equivalent unit for direct materials and $90 per equivalent unit for conversion costs for both beginning work in process and work done in the current period. Summary data for September 2015 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, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.

Physical Units Direct Conversion Materials $110,000 100% Costs $16,300 30% (computer chips) Work in process, beginning inventory (Sept. 1) 1,350 Degree of completion of beginning WIP Started during September 4,000 Good units completed and transferred out during September 2,500 Work in process, ending inventory (Sept. 30) 700 Degree of completion of ending WIP Total costs added during September Normal spoilage as a percentage of good units 15% Degree of completion of normal spoilage Degree of completion of abnormal spoilage 100% $575,000 30% $248,000 100% 100% 100% 100%