Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

 


Step by Step Solution

There are 3 Steps involved in it

Step: 1

Equivalent Units Schedule Physical Units Direct Materials Conversion Costs B... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

write a code for fingerprint

Answered: 1 week ago

Question

Is collateral sprouting a change in axons or dendritic receptors?

Answered: 1 week ago