(Cost assignment; WA) Zero-Bounce manufactures automobile springs. Its pro¬ duction equipment is fairly old, and one bad unit is typically produced for every 20 good units. The bad units cannot be reworked and must be discarded. Spoil¬ age is determined at an end-of-process inspection point. Zero-Bounce uses a weighted average process costing system and adds all material at the beginning of the process. The following data have been gathered from the accounting records for October 1997:LO1

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Beginning inventory (60% complete as to conversion) Units started Ending inventory (30% complete as to conversion) Good units completed 4,000 units 20,000 units 3,000 units 20,000 units MATERIAL CONVERSION Beginning inventory $ 12,492 $ 9,927 Current period 112,548 Total costs $125,040 63,000 $72,927 TOTAL $ 22,419 175,548 $197,967