Answer the following questions using the information below:

Table Craft Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before the inspection, some units are spoiled due to undetectable materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 8% of the good units. Data for December 2018 are as follows:

WIP, beginning inventory 12/1/2018 20,000 units

Direct materials (100% complete)

Conversion costs (75% complete)

Started during December 80,000 units

Completed and transferred out 12/31/2018 76,400 units

WIP, ending inventory 12/31/2018 15,000 units

Direct materials (100% complete)

Conversion costs (65% complete)

Costs for December:

WIP, beginning Inventory:

Direct materials $ 100,000

Conversion costs 60,000

Direct materials added 200,000

Conversion costs added 280,000

1) What is the number of total spoiled units?

A) 8,600 units

B) 4,000 units

C) 5,400 units

D) 7,200 units

2) Normal spoilage totals:

A) 3,200 units

B) 6,112 units

C) 3,840 units

D) 5,400 units

3) Abnormal spoilage totals:

A) 3,200 units

B) 4,000 units

C) 3,360 units

D) 2,488 units

Use the following information to answer number 8.

Costs Totals Direct Materials Conversion

Work in process, beginning $ 16,000 $12,000 $ 4,000

Costs added during period 90,000 60,000 30,000

Total costs to account for 106,000 72,000 34,000

Divided by equivalent units 60,000 56,800

Equivalent unit costs $ 1.80 $ 1.20 $ 0.60

Assignment of costs

Costs transferred out (50,000 $1.80) $ 90,000

Normal spoilage (2,000 $1.80) 3,600

Work in process, ending

Direct materials (8,000 $1.20) 9,600

Conversion (8,000 $0.60 0.60) 2,880

Costs accounted for $106,080

(Differences due to rounding)

4). What is the average per-unit cost of the transferred out product? (Show Work)

$_________________________ per unit.