Chapter 18, Problem 18.31E

Standard-costing method, spoilage. Refer to the information in Exercise 18-29. Suppose LogicCo determines standard costs of $215 per equivalent unit for direct materials and $92 per equivalent unit for conversion costs for both beginning work in process and work done in the current period.

1. 1. Do Exercise 18-29 using the standard-costing method.

Required

1. 2. What issues should the manager focus on when reviewing the equivalent units calculation?

18-29 Weighted-average method, spoilage. 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 weighted-average method of process costing.

Summary data for September 2017 are as follows: