Question

Superchip specializes in the manufacture of microchips for aircraft. 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. Normally, the spoiled units are 15% of the good units transferred out. Spoiled units are disposed of at zero net disposal price.
Superchip uses the weighted-average method of process costing. Summary data for
September 2013 are:
REQUIRED
1. For each cost element, compute the equivalent units. Show physical units in the first column.
2. For each cost element, calculate the cost per equivalent unit.
3. Summarize the total costs to account for, and assign these costs to units completed and transferred out (to normal spoilage), to abnormal spoilage, and to units in ending work in process.


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  • CreatedJuly 31, 2015
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