Question

MicroMem 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. MicroMem uses the​ weighted-average method of process costing. Summary data for September 2017 are as​ follows:

	Physical Units (Computer Chips)	Direct Materials	Conversion Costs
Work in process, beginning inventory (September 1)	1,400	$ 117,532	$ 17,087
Degree of completion of beginning work in progress		100%	30%
Started during September	1,964
Good units completed and transferred out during September	2,200
Work in process, ending inventory (September 30)	540
Degree of completion of ending work in process		100%	25%
Total costs added during September		$ 575,452	$ 228,510
Normal spoilage as a percentage of good units	15%
Degree of completion of normal spoilage		100%	100%
Degree of completion of abnormal spoilage		100%	100%

Question: Finally, assign total costs to units completed and transferred out​ (including normal​ spoilage), to abnormal​ spoilage, and to units in ending work in process. ​(Round your answers to the nearest whole dollar. Note that the total costs account for direct materials and conversion costs may not equal the total production costs due to​ rounding.)

Answer:

	Total Production Costs	Direct Materials	Conversion Costs
Good units completed and transferred out
Cost before adding normal spoilage	$ 635,800	$ 453,200	$ 182,600
Normal Spoilage	95,370	________	________
Total cost of good units completed and transferred out	731,170
Abnormal Spoilage	84,966	60,564	24,402
Work in progress, ending	122,445	111,240	11,205
Total costs accounted for	1,669,751	________	_________

Answer 1

PRODUCTION COST REPORT-FORMING DEPARTMENT
MONTH ENDED SEP, 2017
			Physical	Material	Conversion
UNITS			Units	Equiv. Units	Equiv. Units
Units to account for:
Beginning work in process			1400
Started in production			1964
Total Units to account for			3364
Units Accounted for:
Completed and transferred			2200	2200	2200
Normal Spoilage			330	330	330
Abnormal Spoilage			294	294	294
Ending work in process			540	540	135
Total Units to be accounted for			3364	3364	2959
				Total	Material	Conversion
COSTS				Cost	Cost	Cost
Costs to account for:
Beginning work in process				134,619	117,532	17087
cost added during the period				803,962	575,452	228,510
Total cost to account for				938,581	692,984	245,597
Divided by: Total EUP					3364	2959
Cost per equivalent unit				289	206	83
Cost Accounted for:
Good Units completed:
Cost before Normal Spoilage (2200 units @289)				635800	453200	182600
Normal Spoilage (330 units @$289)				95370	67980	27390
Total cost of Good unit				731170	521180	209990
Abnormal Spilage (294 units)				84966	60564	24402
Ending WIP
Material (540*206)					111240
Conversion (135*83)						11205
Total Work in process ending				122445
Total cost accounted for				938581