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LogicCo 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. LogicCo 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.) Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending Accounted for Physical Units Requirements 1. For each cost category, compute equivalent units. Show physical units in the first column. 2. 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. 3. Should LogicCo's managers choose the weighted-average method or the FIFO method? Explain. Print Done - X

LogicCo 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. LogicCo 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.) Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending Accounted for Physical Units Requirements 1. For each cost category, compute equivalent units. Show physical units in the first column. 2. 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. 3. Should LogicCo's managers choose the weighted-average method or the FIFO method? Explain. Print Done - X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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LogicCo 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. LogicCo 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.) Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending Accounted for Physical Units Requirements 1. For each cost category, compute equivalent units. Show physical units in the first column. 2. 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. 3. Should LogicCo's managers choose the weighted-average method or the FIFO method? Explain. Print Done - X
Transcribed Image Text:LogicCo 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. LogicCo 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.) Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Normal spoilage Abnormal spoilage Work in process, ending Accounted for Physical Units Requirements 1. For each cost category, compute equivalent units. Show physical units in the first column. 2. 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. 3. Should LogicCo's managers choose the weighted-average method or the FIFO method? Explain. Print Done - X
Data table A 1 2 Work in process, beginning inventory (September 1) 3 Degree of completion of beginning work in process 4 Started during September 5 Good units completed and transferred out during September 6 Work in process, ending inventory (September 30) 7 Degree of completion of ending work in process 8 Total costs added during September 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage B Physical Units (Computer Chips) 900 $ 2,754 2,500 490 15% $ C Direct Materials 125,766 $ 100% 100% 619,650 $ 100% 100% D Conversion Costs - 10,368 30% 10% 253,098 100% 100% X of the production process. Conversion costs are added evenly during the process. Some units of this product a disposed of at zero net disposal value. LogicCo uses the FIFO method of process costing. Summary data Weighted-average data Cost per equivalent unit for work done to date Cost of units completed and transferred out Abnormal spoilage Work in process, ending Total costs accounted for Total Production Costs $ $ $ 822,250 $ 82,654 103,978 1,008,882 $ Direct Materials 204.00 $ 586,500 $ 58,956 99,960 745,416 $ Conversion Costs 82.00 235,750 23,698 4,018 263,466
Transcribed Image Text:Data table A 1 2 Work in process, beginning inventory (September 1) 3 Degree of completion of beginning work in process 4 Started during September 5 Good units completed and transferred out during September 6 Work in process, ending inventory (September 30) 7 Degree of completion of ending work in process 8 Total costs added during September 9 Normal spoilage as a percentage of good units 10 Degree of completion of normal spoilage 11 Degree of completion of abnormal spoilage B Physical Units (Computer Chips) 900 $ 2,754 2,500 490 15% $ C Direct Materials 125,766 $ 100% 100% 619,650 $ 100% 100% D Conversion Costs - 10,368 30% 10% 253,098 100% 100% X of the production process. Conversion costs are added evenly during the process. Some units of this product a disposed of at zero net disposal value. LogicCo uses the FIFO method of process costing. Summary data Weighted-average data Cost per equivalent unit for work done to date Cost of units completed and transferred out Abnormal spoilage Work in process, ending Total costs accounted for Total Production Costs $ $ $ 822,250 $ 82,654 103,978 1,008,882 $ Direct Materials 204.00 $ 586,500 $ 58,956 99,960 745,416 $ Conversion Costs 82.00 235,750 23,698 4,018 263,466
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