Assume the following for Uiagalelei Co. for the month: Beg. Inventory in process, 50% completed 30,000 units Transferred into process during month 70,000 units Completed and transferred out of process during month 60,000 units Ending Inventory in process, 70% completed 25,000 units Beg. Inventory costs: Transferred in costs $ 60,000 Direct Material A $180,000 Direct Material B $ 0 Conversion costs $105,000 Current costs incurred during month: Transferred in costs $140,000 Direct Material A $420,000 Direct Material B $300,000 Conversion costs $516,250 Conversion costs are incurred uniformly during the process, while there are two types of material added; Material A is added when the units are 40% complete while Material B is added when the units are 74% complete. Normal spoilage is 10,000 units, and any excess spoilage is considered to be abnormal spoilage. The inspection point occurs when the units are 75% complete. Assume the FIFO method.

1. Assuming that Uiagalelei Co. sells all the units transferred out for the month, what is the total amount of cost from this problem that will appear on the income statement for the month?

2.Assuming the weighted average method, what is the cost per unit just for Transferred in Cost? Given the cost per unit you calculated in number 1 above for Transferred in Cost, what inference can we make about the cost incurrence of Transferred in Cost across months? Why?