$18-29\backslash$& $30$

Waferco 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. Waferco uses the weighted$-$average method of process costing.

Summary data for September $2017$ are as follows:

Required:

$1.$ 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.

A$-$ Using Weighted Average Method

B$-$ Using FIFO Method $18-29\backslash$& $30$

Waferco 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. WaferCo uses the weighted$-$average method of process costing.

Summary data for September $2017$ are as follows:

Required:

$1.$ 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.

A$-$ Using Weighted Average Method

B$-$ Using FIFO Method Using the Weighted Average Method

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|$c$|\}$

$\backslash$hline & Step $1$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Step $2\}\backslash \backslash$

$\backslash$hline & & $\backslash$multicolumn$\{2\}\{$c$|\}\{\backslash$begin$\{$tabular$\}\{$c$\}$

Equivalent Units

$\backslash$end$\{$tabular$\}\}\backslash \backslash$

$\backslash$hline & $\backslash$begin$\{$tabular$\}\{$c$\}$

Physical $\backslash \backslash$

units

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Direct $\backslash \backslash$

Materials

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Conversion $\backslash \backslash$

costs

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline WIP Beg. Inventory & & & $\backslash \backslash$

$\backslash$hline Started during current period & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline $\backslash$begin$\{$tabular$\}\{$l$\}$

Good Units Completed $\backslash$& transferred out during $\backslash \backslash$

current period

$\backslash$end$\{$tabular$\}$ & & & $\backslash \backslash$

$\backslash$hline Normal Spoilage & & & $\backslash \backslash$

$\backslash$hline Abnormal Spoilage & & & $\backslash \backslash$

$\backslash$hline WIP End. Inventory & & & $\backslash \backslash$

$\backslash$hline Equivalent units of work done in current period & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & $\backslash$multicolumn$\{1\}\{|$c$|\}\{\backslash$begin$\{$tabular$\}\{$c$\}$

Total $\backslash \backslash$

production $\backslash \backslash$

costs

$\backslash$end$\{$tabular$\}\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Direct $\backslash \backslash$

Materials

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Conversion $\backslash \backslash$

costs

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline Step $3$ & WIP Beg. & & & $\backslash \backslash$

$\backslash$hline & Costs added in current period & & & $\backslash \backslash$

$\backslash$hline & Total costs to account for & & & $\backslash \backslash$

$\backslash$hline Step $4$ & Costs incurred to date & & & $\backslash \backslash$

$\backslash$hline & $\backslash$begin$\{$tabular$\}\{$l$\}$

Divided by: Equivalent units of work done in $\backslash \backslash$

current period

$\backslash$end$\{$tabular$\}$ & & & $\backslash \backslash$

$\backslash$hline & Cost per equivalent unit & & & $\backslash \backslash$

$\backslash$hline Step $5$ & Assignment of costs: & & & $\backslash \backslash$

$\backslash$hline & $\backslash$begin$\{$tabular$\}\{$l$\}$

Good units completed $\backslash$& transferred out $\backslash \backslash$

during current period

$\backslash$end$\{$tabular$\}$ & & & $\backslash \backslash$

$\backslash$hline & Costs before adding normal spoilage & & & $\backslash \backslash$

$\backslash$hline A$)$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Normal spoilage $\backslash \backslash$

transferred out

$\backslash$end$\{$tabular$\}$ & & $\backslash \backslash$

$\backslash$hline B$)$ & Abnormal spoilage & & & $\backslash \backslash$

$\backslash$hline C$)$ & WIP End. Inventory & & & $\backslash \backslash$

$\backslash$hline A$+$B$+$C & Total costs accounted for & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ Using FIFO Method

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|$c$|\}$

$\backslash$hline & Step $1$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Step $2\}\backslash \backslash$

$\backslash$hline & & $\backslash$multicolumn$\{2\}\{|$c$|\}\{\backslash$begin$\{$tabular$\}\{$c$\}$

Equivalent Units

$\backslash$end$\{$tabular$\}\}\backslash \backslash$

$\backslash$hline & $\backslash$begin$\{$tabular$\}\{$c$\}$

Physical $\backslash \backslash$

units

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Direct $\backslash \backslash$

Materials

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$c$\}$

Conversion $\backslash \backslash$

costs

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline WIP Beg. Inventory & & & $\backslash \backslash$

$\backslash$hline Started during current period & & & $\backslash \backslash$

$\backslash$hline Good units completed $\backslash$& transferred out & & & $\backslash \backslash$

$\backslash$hline From Beg. WIP & & & $\backslash \backslash$

$\backslash$hline Started $\backslash$& completed & & & $\backslash \backslash$

$\backslash$hline Normal Spoilage & & & $\backslash \backslash$

$\backslash$hline Abnormal Spoilage & & & $\backslash \backslash$

$\backslash$hline WIP End. Inventory & & & $\backslash \backslash$

$\backslash$hline Equivalent units of work done in current period & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & & Total

production

costs & $\backslash$begin$\{$tabular$\}\{$l$\}$

Direct $\backslash \backslash$

Materials

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

Conversion $\backslash \backslash$

costs

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline Step $3$ & WIP Beg. & & & $\backslash \backslash$

$\backslash$hline & Costs added in current period & & & $\backslash \backslash$

$\backslash$hline & Total costs to account for & & & $\backslash \backslash$

$\backslash$hline Step $4$ & Costs added in current period & & & $\backslash \backslash$

$\backslash$hline & Divided by: Equivalent units of work done in current period & & & $\backslash \backslash$

$\backslash$hline & Cost per equivalent unit of work done in current period & & & $\backslash \backslash$

$\backslash$hline Step $5$ & Assignment of costs: & & & $\backslash \backslash$

$\backslash$hline & Good units completed $\backslash$& transferred out & & & $\backslash \backslash$

$\backslash$hline & $*$ WIP Beg. & & & $\backslash \backslash$

$\backslash$hline & Costs added to Beg. WIP in current period & & & $\backslash \backslash$

$\backslash$hline & Total from beg. Inventory & & & $\backslash \backslash$

$\backslash$hline & $*$Started $\backslash$& completed before normal spoilage & & & $\backslash \backslash$

$\backslash$hline & $*$Normal Spoilage & & & $\backslash \backslash$

$\backslash$hline A$)$ & Total costs of good units completed $\backslash$& transferred out & & & $\backslash \backslash$

$\backslash$hline B$)$ & Abnormal Spoilage & & & $\backslash \backslash$

$\backslash$hline C$)$ & WIP End. Inventory & & & $\backslash \backslash$

$\backslash$hline A$+$B$+$C & Total costs accounted for & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$