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i need requirements 1-3 (please answer all same questions different parts) ProcessPro is a fast-growing manufacturer of computer chips. Direct materials are added at the
i need requirements 1-3 (please answer all same questions different parts)
ProcessPro 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. ProcessPro uses the FIFO method of process costing. Summary data and weighted-average data for September 2020 are as follows: (Click the icon to view the data.) (Click the icon to view the weighted-average data.) Read the requirements. Requirement 1. For each cost category, compute equivalent units. Show physical units in the first column. Enter the physical units in first, then calculate the equivalent units. (Complete all input fields. Enter a "0" for applicable zero amounts.) ProcessPro is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Requirement 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. Begin by summarizing total costs to account for. Next calculate cost per equivalent unit for each cost category. (Enter your answers to the nearest cent.) Finally assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process. (Complete all input fields. Round intermediary calculations and your final answers to the nearest whole dollar. Note that the total costs accounted for may not equal the total costs to account for due to rounding.) Requirement 3. Should ProcessPro's managers choose the weighted-average method or the FIFO method? Explain. than the weighted-average ending inventory The FIFO ending inventory is by . The FIFO in costs to spoilage. As a result, the FIFO method results in a method also assigns relatively cost of units completed and transferred out and a ending work-in-process inventory. ProcessPro's managers should consider the because it leads to a higher cost of goods completed and transferred (and sold), thereby lowering taxes. The managers may have an incentive, however, to use the and show a higher level of current income if their compensation increases with higher operating income or if there are debt covenants that would be violated by showing lower income. ProcessPro's managers may also consider an advantage of the which is that it provides better information for managing the Data table Weighted-average data Step by Step Solution
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