Data Table Direct Conversion Physical Units (Computer Chips Materials Costs $125,766 $10,368 30% 900 Work in process, beginning inventory (September 1) 100% Degree of completion of beginning work in process Started during September Good units completed and transferred out during September Work in process, ending inventory (September 30) 2,754 2,500 490 10% $253,098 100% 100% $619,650 Degree of completion of ending work in process Total costs added during September Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 15% 100% 100% 100% LogicCo 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. LogicCo uses the weighted-average method of process costing. Summary data for September 2017 are as follows: EE (Click the icon to view the data.) Read the requirements Requirement 1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule Enter the physical units in first, then calculate the equivalent units. Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs 900 2754 3654 Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for 375 3654 Requirement 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. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs Total costs to account for Next, calculate cost per equivalent unit for each cost category. (Enter your answers to the nearest cent.) Next, calculate cost per equivalent unit for each cost category. (Enter your answers to the nearest cent.) Direct Conversion Materials Costs Divide by: Cost per equivalent unit for work done to date Finally, assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (Round your answers to the nearest whole dollar. Note that the total costs account for direct materials and conversion costs may not equal the total production costs due to rounding.) Total Direct Conversion Production Costs Materials Costs Good units completed and transferred out Total cost of good units completed and transferred out Total costs accounted for Data Table Direct Conversion Physical Units (Computer Chips Materials Costs $125,766 $10,368 30% 900 Work in process, beginning inventory (September 1) 100% Degree of completion of beginning work in process Started during September Good units completed and transferred out during September Work in process, ending inventory (September 30) 2,754 2,500 490 10% $253,098 100% 100% $619,650 Degree of completion of ending work in process Total costs added during September Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage 15% 100% 100% 100% LogicCo 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. LogicCo uses the weighted-average method of process costing. Summary data for September 2017 are as follows: EE (Click the icon to view the data.) Read the requirements Requirement 1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule Enter the physical units in first, then calculate the equivalent units. Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs 900 2754 3654 Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for 375 3654 Requirement 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. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs Total costs to account for Next, calculate cost per equivalent unit for each cost category. (Enter your answers to the nearest cent.) Next, calculate cost per equivalent unit for each cost category. (Enter your answers to the nearest cent.) Direct Conversion Materials Costs Divide by: Cost per equivalent unit for work done to date Finally, assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (Round your answers to the nearest whole dollar. Note that the total costs account for direct materials and conversion costs may not equal the total production costs due to rounding.) Total Direct Conversion Production Costs Materials Costs Good units completed and transferred out Total cost of good units completed and transferred out Total costs accounted for
