3. (10 points) Wiz Company makes wooden toys in its forming department, and it uses the First-In-First-Out (FIFO) method of process costing. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoiled units are detected upon inspection at the end of the process (i.e., inspection point is at the 100% of the production process) and are disposed of at zero net disposal value. Summary data for August 2020 are as follows: Work in process, beginning inventory (August 1) Degree of completion of beginning work in process Started during August Good units completed and transferred out during August Work in process, ending inventory (August 31) Degree of completion of ending work in process Total costs added during August Normal spoilage as a percentage of good units Degree of completion of normal spoilage Degree of completion of abnormal spoilage Physical Direct Conversion units Materials Costs 2,000 $17,700 $10,900 100% 50% 10,000 9,000 1,800 100% 75% $85,000 $105,500 1096 100% 100% 100% 10096 a. For each cost category, calculate equivalent units. Show physical units in the first column of your schedule. b. Summarize total costs to account for; calculate cost per equivalent unit for each cost category; and assign total costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process