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Weighted-average method, spoilage. Logic Co is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs

Weighted-average method, spoilage. Logic Co 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. Logic Co uses the weighted average method of process costing. Summary data for September 2017 are as follows:

'&%$ Physical Units (Computer Chips) Direct Materials Conversion Costs $ 10,368$125,766900Work in process, beginning inventory (September 1) 100% 30%Degree of completion of beginning work in process 2,754Started during September Good units completed and transferred out during September2,500 490Work in process, ending inventory (September 30) 100% 10%Degree of completion of ending work in process $253,098$619,650Total costs added during September 15%Normal spoilage as a percentage of good units 100% 100%Degree of completion of normal spoilage 100% 100% spoilage Degree of completion of abnormal.

1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule. 

2. 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.

 


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