KG Industries had work-in-process for October 2022 as follows:

Percentage of Completion

Date Units Materials Conv Cost

Oct 1, 2022 1,500 40% 10%

Oct 31, 2022 2,000 80% 70%

During October the company started production work on 13,000 units. Manufacturing costs incurred during 2022 were: Materials, $88,000; conversion costs, $150,000. Inventory at January 1, 2022 was carried at a cost of $1,670 (materials of $1,150 and conversion costs of $520). During the month, 400 units failed to meet quality standards. Inspection occurs when units are 60% complete as to conversion costs and 75% complete as to materials. Engineers designed the production process to hold normal spoilage at 2% of units passing inspection. The company uses the FIFO method of costing its output.

Determine the following: {NOTE: Provide a rationale for any judgments used in computing this information}

A) Total equivalent units for October 2022:

i) materials ii) conversion costs

B) Equivalent unit cost for October 2022:

i) materials ii) conversion costs

C) Total cost of abnormal spoilage during October 2022