L02 18-24 Weighted-average method, spoilage. Chipcity Inc. is a fast-growing manufacturer of computer equhalent units for chis. Direct materials are added at the start of the production process. Conversion costs are added evenly costs, 2,880 units 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. Chipcity uses the weighted-average method of process costing. Summary data for September 2015 are: Physical Units (computer chips) 600 Direct Materials S 96,000 100% Conversion Costs $ 15,300 Work-in-process, beginning inventory (Sept. 1) Degree of completion of beginning WIP 30%