Analyzing and recording spoiled unit activities Drake Industries manufactures toner car- tridges for computer laser printers. The production process requires three process centers. At the end of each process center, units are inspected. Those passing proceed on in the production process or to finished goods. Failed units in the first two processing centers are discarded with no salvage value. Units rejected at the final inspection are sold for $6 each to a company that breaks them down and uses the materials to produce other products.

Below are November production data for the three process centers:

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Total number of units produced Number of spoiled units Maximum number of normal spoiled units expressed as % of units manufactured Process Process Process Center 1 Center 2 Center 3 10,000 9,000 9,500 100 500 300 2% 3% 2% $8 $15 $22 Production cost per unit REQUIRED For each of the three process centers: a. Determine the number of normal spoiled units and the number of abnormal spoiled units. b. Calculate the total amount of spoiled unit cost. c. Calculate the total cost of normal spoilage. d. Calculate the increase in the unit cost of good units caused by spoiled units. e. Calculate the total amount of abnormal spoilage cost. f. Prepare any journal entries necessary to account for spoiled unit costs.