Standard-costing method, spoilage. Refer to the information in Exercise 18-25. Suppo...

Standard-costing method, spoilage. Refer to the information in Exercise 18-25. Suppose WaferCo determines standard costs of $240 per equivalent unit for direct materials and $100 per equivalent unit for conversion costs for both beginning work in process and work done in the current period.

1. Do Exercise 18-25 using the standard-costing method.

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

11 -25 Weighted-average method, spoilage. WaferCo 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. WaferCo uses the weightedaverage method of process costing.

Summary data for September 2014 are as follows:

1. For each cost category, compute equivalent units. Show physical units in the first column of your schedule.

2. Summarize the total costs to account for; calculate the 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.