APCO Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process costing system using the weighted-average method. Bicycle parts are manufactured in the molding department and then are consolidated into a single bike unit in the molding department and transferred to the assembly department where they are assembled. After assembly, the bicycle is sent to the packing department. Annual cost and production figures for the assembly department are presented in the schedules below.

Defective bicycles are identified at the inspection point when the assembly labor process is 70% complete; all assembly materials have been added at this point. The normal rejection rate for defective bicycles is 5% of the bicycles reaching the inspection point. Any defective bicycles above the 5% quota are considered to be abnormal. All defective bikes are removed from the production process and destroyed.

	Assembly Department Cost Data												Total Cost of Bike through Assembly
	Transferred-in from Molding Department				Assembly Materials				Assembly Conversion
Prior period costs	$	98,200			$	9,060			$	14,650			$	121,910
Current period costs		1,250,600				104,520				248,270				1,603,390
Total costs	$	1,348,800			$	113,580			$	262,920			$	1,725,300

Assembly Department Production Data
				Percentage Complete
	Bicycles			Transferred-in			Assembly Materials			Assembly Conversion
Beginning inventory		3,160		100	%		100	%		80	%
Transferred-in from molding during year		61,000		100
Transferred out to packing during year		48,000		100			100			100
Ending inventory		4,320		100			50			20

Required:

1. Compute the number of defective, or spoiled, bikes that are considered to be

a. Normal spoilage

b. Abnormal spoilage.

2. Compute the equivalent units of production for the year for

a. Bicycles transferred in from the molding department.

b. Bicycles produced with regard to assembly materials.

c. Bicycles produced with regard to assembly conversion.

3. Compute the cost per equivalent unit for the fully assembled bike.

4. Compute the amount of the total production cost of $1,725,300 that will be associated with the following items:

a. Normal spoiled units.

b. Good units completed in the assembly department.

c. Abnormal spoiled units.

d. Ending Work-in-Process Inventory in the assembly department.