Compute Costs of Spoiled Goods—FIFO Method (L.0.5) Refer to the data in exercise 8-15. Assume that there are 5,000 units in ending inventory, that there was normal spoilage of 1 .700 units, and 15,300 good units were transferred out. Spoilage occurs at the end of the process after all materials and conversion costs have been added. All other information is the same as in exercise 8-15.

Required:

a. Using the FIFO method, how much cost would be assigned to spoiled units, to good units transferred out, and to good units in ending inventory? (The company assigns costs to spoiled units; that is, the second method discussed in the text.)

b. If the spoilage had been considered abnormal spoilage, would that affect your computations in

(a) above?