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 ofthis product are spoiled as a result of defects not detectablebefore inspection of finished goods. Spoiled units are disposed ofat zero net disposal value. MicroMem uses the? weighted-averagemethod 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 completedand transferred out? (including normal? spoilage), to abnormal?spoilage, and to units in ending work in process. ?(Round youranswers to the nearest whole dollar. Note that the total costsaccount for direct materials and conversion costs may not equal thetotal 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 | ________ | _________ |
