Chiptrail Inc. is afast-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 Chiptrail determines standard costs of $240 per equivalent unit for direct materials and $105 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 costcategory, compute equivalent units. Show physical units in the first column of your schedule.

2.

Summarize total costs to accountfor, calculate cost per equivalent unit for each costcategory, and assign total costs to units completed and transferred out(including normalspoilage), to abnormalspoilage, and to units in ending work in process.

0 Data Table Physical Units Direct Conversion {computer chips} Materials Costs Work in process, beginning inventory (Sept. 1) 1,250 $112,000 $15,700 Degree of completion of beginning WIP 100% 30% Started during September 2,500 Good units completed and transferred out during September 2,400 Work in process, ending inventory (Sept. 30) 300 Degree of completion of ending WIP 100% 45% Total costs added during September $569,000 $248,000 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% Print Done Flow of Production Units Work in process beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending Accounted for Work done in current period onlyr