(1) Compute equivalent units of conversion costs.

(2) Compute conversion costs per equivalent unit

(3) Compute the total conversion costs transferred out to the next process

Beginning work in process, 60% as of 12/1/2010 100 units

Transferred in 620

Normal spoilage 40

Abnormal spoilage 50

Good units completed and transferred out 550 units

Ending work in process, 75% as of 12/31/2010 80

Conversion costs in beginning inventory $160,000

Current period conversion costs $960,000