Weighted-average method, spoilage. 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 weighted- average method of process costing. Summary data for September 2017 are as follows: Page Layout Data Home Insert Formulas Review View в Physical Units (Computer Chips) Direct Conversion 1. Materials Costs 2 Work in process, beginning inventory (September 1) Degree of completion of beginning work in process 4 Started during September 5 Good units completed and transferred out during September 6 Work in process, ending inventory (September 30) Degree of completion of ending work in process 8 Total costs added during September 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 900 $125,766 $ 10,368 100% 30% 2,754 2,500 490 100% 10% $619,650 $253,098 15% 100% 100% 100% 100%
Weighted-average method, spoilage. 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 weighted- average method of process costing. Summary data for September 2017 are as follows: Page Layout Data Home Insert Formulas Review View в Physical Units (Computer Chips) Direct Conversion 1. Materials Costs 2 Work in process, beginning inventory (September 1) Degree of completion of beginning work in process 4 Started during September 5 Good units completed and transferred out during September 6 Work in process, ending inventory (September 30) Degree of completion of ending work in process 8 Total costs added during September 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage 900 $125,766 $ 10,368 100% 30% 2,754 2,500 490 100% 10% $619,650 $253,098 15% 100% 100% 100% 100%
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter6: Statistical Inference
Section: Chapter Questions
Problem 26P: Because of high production-changeover time and costs, a director of manufacturing must convince...
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Question
For each cost category, compute equivalent units. Show physical units in the first column of your schedule.
Transcribed Image Text:Weighted-average method, spoilage. 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 weighted-
average method of process costing.
Summary data for September 2017 are as follows:
Page Layout
Data
Home
Insert
Formulas
Review
View
в
Physical Units
(Computer Chips)
Direct
Conversion
1.
Materials
Costs
2 Work in process, beginning inventory (September 1)
Degree of completion of beginning work in process
4 Started during September
5 Good units completed and transferred out during September
6 Work in process, ending inventory (September 30)
Degree of completion of ending work in process
8 Total costs added during September
9 Normal spoilage as a percentage of good units
10 Degree of completion of normal spoilage
11 Degree of completion of abnormal spoilage
900
$125,766
$ 10,368
100%
30%
2,754
2,500
490
100%
10%
$619,650
$253,098
15%
100%
100%
100%
100%
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