Great Kraft Mart 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. Spoiled units are identified when inspection occurs and disposed off at zero value. Relevant data are provided below:

Inspection occurs when the units are 50% complete

Normal spoilage equals 5% of the good units

Production and cost data for December are provided below:

WIP, beginning inventory on December 1st 25,000 units

% completion of DM 100%

% completion of Conversion 60%

Started during December 75,000 units

Completed and transferred out good units during December 76,000 units

WIP, ending inventory on December 31st 16,000 units

% completion of DM 100%

% completion of Conversion 60%

Costs incurred during the month of December

Direct materials cost $225,000

Conversion cost $278,000

Cost of beginning WIP inventory as of December 1st

Direct materials cost $125,000

Conversion costs $80,400

Great Kraft Mart uses weighted-average method of process costing

Required:

a) What is the number of normal and abnormal spoiled units in December?

b) What are the equivalent units of DM and CC for the month of December under Weighted average method?

c) What is the total cost per equivalent unit?

d) What cost is allocated to the abnormal spoilage units?

e) What is the cost allocated to the completed and transferred out units?

f) What is the cost assigned to the ending WIP?

g) Record the journal entry for recognizing the abnormal spoilage in December.