(Appendix; EUP computations; normal loss) Southeastern Corp. produces paint in a process in which spoilage occurs continually. Spoilage of 1 per¬ cent or fewer of the gallons of raw material placed into production is con¬ sidered normal. The following operating statistics are available for June 2006:LO1.

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Beginning inventory (60% complete as to material; 70% complete as to conversion) Started during June Ending inventory (40% complete as to material; 20% complete as to conversion) Spoiled a. How many gallons were transferred out? 8,000 gallons 180,000 gallons 4,000 gallons 1,400 gallons b. What are the FIFO equivalent units of production for material? For con- version?