ACC318, Ch 18 NewMinasB system using the first-in-first-out method to det into a single bike unit in the moulding department and transferred to the assembly department where they are partially assembled. After assembly the bicycle is sent to the packing department Bikes manufuactures various lines of bicycles employing a process cost ermine unit costs. Parts are consolidated All assembly materials have been added when the assembly labour process is 100% complete, defective bicycles are also identified when the assembly process is 100% complete. The normal rejection percentage for defective bicycles is 5% of good units that pass the inspection. The presence of any defective bicycles over and above 5% quota is considered abnormal. All defective bikes are removed from the production process and destroyed Annual cost and production figures for a particular style of bike in the assembly department follow: Assembly conversion 11,930 236,592 $ 248,522 Assembly Transferred-In from Mouldin Prior period costs Current period costs Total costs 82,200 1,237,500 $ 1,319,700 materials 6,660 96,800 $103,460 Total Costs 100,790 1,570,892 $1,671,682 On January 1st, there were 3,000 units in the beginning inventory, with 80% of conversion completion. During the year, 45,000 units were transferred and 40,000 units were transferred-out to Packing. There are 4,000 units in the ending inventory, with 20% partially converted -in from Moulding, REQUIRED: Using the FIFO m spoilage units, and to units in WIP/ED. units. ethod, assign the costs to units transferred-out, to the abnormal Calculate the average cost of transferred-out