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 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 Data Table Physical Units Direct Conversion (Computer Chips Materials Costs $10,368 30% $125,766 100% 900 Work in process, beginning inventory (September 1) 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% i Weighted-average data Total Production Direct Conversion Costs Materials Costs 204.00 $ 82.00 Cost per equivalent unit for work done to date Cost of units completed and transferred out Abnormal spoilage Work in process, ending Total costs accounted for 822,250 $ 82,654 103,978 1,008,882 $ 586,500 $ 58,956 99,960 745,416 $ 235,750 23,698 4,018 263,466 Requirements 1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule. 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. Should LogicCo's managers choose the weighted-average method or the FIFO method? Explain briefly. 2. 3. 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. (Complete all answer boxes. Enter a "O" for applicable zero amounts.) Equmaleht Uhits Physica Dect Conversion Units Materials Costs Flow of Production 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 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 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. (Complete all answer boxes. Round your 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.) Total DirectConversion Production Costs Materials Costs Completed and transferred out: Total from beginning inventory before normal spoilage Total costs of units completed and transferred out Total costs accounted for Requirement 3. Should LogicCo's managers choose the weighted-average method or the FIFO method? Explain briefly. The FIFO ending inventory is method also assigns $ than the weighted-average ending inventory by $ in costs to spoilage. As a result, the FIFO method results in a relatively The FIFO cost of units completed and transferred out and aending work-in-process inventory LogicCo's managers should consider the V because it leads to a higher cost of goods completed and transferred (and sold), thereby lowering taxes. The managers may have increases with higher operating income or advantage of the period from costs incurred in previous per. V and show a higher level of current income if their compensation uld be violated by showing lower income. LogicCo's managers may also consider an information for managing the business because it keeps separate the costs of the current FIFO method weighted-average method