Case 3 ABC Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At ABC's facility, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero. ABC uses the weighted-average method of process costing. Summary data for October 2020 are as follows: Unit Direct Conversion Materials Cost WIP, beginning inventory (October 1) 2,000 $ 20,500 $ 13,500 Degree of Completion of beginning WIP 100% 60% Started during October 10,000 Good Units completed and transferred out during 9,000 October WIP. ending inventory (October 31) 1.800 Degree of completion of ending WIP 100% 50% Total Costs added during October $ 99,500 $ 67,500 Normal Spoilage (as percentage of good units) 10% Degree of completion of normal spoilage 100% 100% Degree of completion of abnormal spoilage 100% 100% 1. For each cost category, calculate equivalent units. Show physical units in the first column of your schedule. 2. Summarize the total costs to account for calculate the cost per equivalent unit for each cost category, and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in en ending work in process