Total equivalent units for conversion costs, 2,880 units

ti

LO 2 PP 1. Equivalent units for conversion costs for the current period, 2,700 units

ETA

18-24 Weighted-average method, spoilage. Chipcity Inc, 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. Chipcity uses the vveighted-average method of process costing. Summary data for September 2018 are

Physical Units (computer chips)

Direct Materials

Conversion Costs

Work-in-process, beginning inventory (Sept, 1 Degree of completion of beginning WIP Started during September Good units completed and transferred out during September Work-in-process, ending inventory (Sept. 30) Degree of completion of ending WIP 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

600 2550 2,100 450

15%

96,01:10 15,300 100% 30%

HO% 40% $567,000 S230,400

100% 100%

100% 100%

Required 1. For each cost category, compute equivalent units, Show physical units in the first column of your schedule. 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. 18-25 FIFO method, spoilage. Refer to the information in Exercise 18-24. Required Do Exercise 18-24 using the FIFO method of process costing.