(EUP computations; normal and abnormal loss) The Bangor factory of New England Chemical produces environmental chemicals in processes in which spoilage takes place on a continual basis. Management considers normal spoilage to be 0.5 per¬ cent or less of gallons of material placed into production. The following operating statistics are available for September 1997 for the chemical XZP:

a. How many gallons were transferred out?

b. How much normal spoilage occurred?

c. How much abnormal spoilage occurred?

d. What are the FIFO equivalent units of production for materials? For con¬ version costs?

e. How are costs associated with the normal spoilage handled?

f. How are costs associated with the abnormal spoilage handled?LO1

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Beginning inventory (20% complete as to material; 30% complete as to conversion) Started during September Ending inventory (60% complete as to material; 70% complete as to conversion) Spoiled 8,000 gallons 180,000 gallons 4,000 gallons 1,400 gallons