25. (Cost assignment; WA) CushionRide manufactures automobile springs. Its production 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.

Spoilage is determined at an end-of-process inspection point. CushionRide 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 January 2001:

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

a. Prepare an EUP schedule.

b. Determine the cost of the normal spoilage and allocate that cost to the appropriate inventory.