Cracked Inc. manufactures a single product and uses the weighted average method of process costing. Direct materials are added at the beginning of the production process. Conversion costs are incurred evenly throughout production. Inspection takes place at the end of the production process. After inspection, some units are spoiled due to defects. Spoiled units generally constitute 2% of the good units transferred out (this is normal spoilage). Assume all spoilage is from the current months production. Data provided for September is as follows:

What cost would be associated with normal spoilage and abnormal spoilage respectively, in September?

a. $7,927; $5,781

b. $6,437; $7,271

c. $7,247; $6,461

d. $5,483; $8,225

e. $6,973; $6,735

f. $7,090; $6,848

g. $4,001; $2,972

h. None of the above

Units: WIP, beginning inventory 12,500 WIP, ending inventory 5,700 Started in September 54,000 Good units completed and transferred out 58,500 Beginning work in process was 40% complete with respect to conversion. Ending work in process was 20% complete with respect to conversion. Costs: WIP, beginning inventory: Direct material cost $ 66,415 Conversion costs $37,622 Costs added: Direct material costs added $160,920 Conversion costs added $119,574