Chipster Inc. is a fast-growing manufacturer of computer chips. Direct materials are added at the start...

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Chipster 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. Chipster uses the weighted-average method of process costing. Summary data for September are: (Click the icon to view the data.) 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. Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process beginning 1,400 Started during current period 2,550 To account for 3,950 Completed and transferred out during current period 2,600 Normal spoilage 390 Abnormal spoilage 460 Work in process, ending 500 3,950 Accounted for Work done to date Chipster 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. Chipster uses the weighted-average method of process costing. Summary data for September are: (Click the icon to view the data.) 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. Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process beginning 1,400 Started during current period 2,550 To account for 3,950 Completed and transferred out during current period 2,600 Normal spoilage 390 Abnormal spoilage 460 Work in process, ending 500 3,950 Accounted for Work done to date

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Answer 1 Equivalent Units Calculation a Direct Materials Work in process beginning 1400 units Starte... View the full answer