Question #$2$

ProcessPro 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. ProcessPro uses the FIFO method of

process costing. Summary data and weighted$-$average data for September $2020$ are as follows:

$($Click the icon to view the data.$)$

$($Click the icon to view the weighted$-$average data.$)$

Read the requirements.

Requirement $1.$ For each cost category, compute equivalent units. Show physical units in the first column.

Enter the physical units in first, then calculate the equivalent units. $($Complete all input fields. Enter a $"0"$ for applicable zero amounts.$)$

Equivalent units of work done in current period

Weighted$-$average data

Requirements

For each cost category, compute equivalent units. Show physical units in the

first column.

Summarize total costs to account for; calculate 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.

Should ProcessPro's managers choose the weighted$-$average method or the

FIFO method? Explain.

Data table