1. For each of the following items in a company that manufactures jeans, identify whether it would be considered spoilage, reworked units, or scrap.

a) Jeans with slightly different fabric colors on the left and right legs sold at a reduced price

b) Jeans that were sent back through the manufacturing process to correct a faulty zipper

c) pieces of fabric left over during the cutting process sold ot a nearby daycare center

2. Under the FIFO method of process costing, the calculation of cost per equivalent unit of production considers:

a) current period costs only

b) current period costs plus the cost of beginning work in process inventory

c) current period costs plus the cost of ending work in process inventory

d) current period costs less the cost of beginning work in process inventory

3. There were two departments in a company using process costing (FIFO) - Assembly and Finishing. In the finishing department, there were 5,000 units in ending inventory. The units were 80% complete with respect to finishing material costa and 75% complete with respect to Finishing Conversion costs. Determine the number of units that should be included in the calculation of equivalent units of production in the Finishing Department for Transferred (Assembly) costs.