3. Superio Ltd. uses process costing to determine its product costs. In its processing department, direct material A is added at the beginning of the process and direct material B is added when production is 90% complete. Conversion costs are added evenly throughout. The inspection point is at the 80% stage of production. Normal spoilage is 2% of all good units that pass inspection The following details are available for January production. Beginning inventory Number of units Direct materials cost Conversion cost Per cent completion 4,500 $22,500 $13,000 65% Month of January activity Number of units started Direct material A cost Direct material B cost Conversion costs Number of units completed Ending inventory Per cent completion of ending inventory 25,000 $160,000 $354,000 $560,600 22,000 7,000 40% The company uses the FIFO method. What is the cost of the abnormal spoilage for January? a) $1,393 b) $1,464 c) $1,592 d) $2,442 3. Superio Ltd. uses process costing to determine its product costs. In its processing department, direct material A is added at the beginning of the process and direct material B is added when production is 90% complete. Conversion costs are added evenly throughout. The inspection point is at the 80% stage of production. Normal spoilage is 2% of all good units that pass inspection The following details are available for January production. Beginning inventory Number of units Direct materials cost Conversion cost Per cent completion 4,500 $22,500 $13,000 65% Month of January activity Number of units started Direct material A cost Direct material B cost Conversion costs Number of units completed Ending inventory Per cent completion of ending inventory 25,000 $160,000 $354,000 $560,600 22,000 7,000 40% The company uses the FIFO method. What is the cost of the abnormal spoilage for January? a) $1,393 b) $1,464 c) $1,592 d) $2,442