I will vote if correct!!!
Wintel 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 Wintel uses the FIFO method of process costing Summary data and weighted average data for September 2017 are as follows: (Click the icon to view the data) (Click the icon to view the weighted average data.) Read the requirements Work in process, ending Accounted for Equivalent units of work done in current period Requirement 2. Summarize total costs to account for calculate the 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 the total costs to account for Total Direct Conversion Production Costs Materials Costs Total costs to account for Requirement 3. Should Wintel's managers choose the weighted average method or the FIFO method? Explain briefly 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 ending work-in-process inventory a Wintel'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. Winter's managers may also consider an advantage of the which is that it provides better information for managing the business because it keeps separate the costs of the current period from costs incurred in previous periods