Mandalorian Company produces a soft drink which it sells under the name Baby Yoda Soda. It distributes the product throughout the department stores and canteens of the outer rim. For the mixing department, direct materials enter at the beginning of the process, while conversion occurs evenly during the process. Given the importance of its sweetness and green color, the quality control process is extensive. Baby Yoda Soda is made in batches of 1,000 liters. Defective batches of soda are detected upon inspection at the end of the process and considered spoilage. The spoiled units and are discarded at a net disposal value of zero.

Mandalorian uses the weighted-average method of process costing. Since direct materials are added at the initiation of the production cycle and constant throughout, they are ignored for these calculations. Spoiled units generally constitute 4% of the good liters. Data for December 2020 are as follows:

WIP, beginning inventory, 12/1/2020 35,000 liters Started during the Month 85,000 liters Completed and Transferred out 100,000 liters WIP, ending inventory 12/31/2020 10,000 liters Cost of beginning WIP $128,000 Conversion costs added $472,000

Required: 1. How many units are spoiled units? 2. How many units would be considered normal spoilage? 3. How many units would be considered abnormal spoilage? 4. What would the cost per equivalent unit be for the month? 5. What cost would be allocated to normal spoilage? 6. What cost would be allocated to abnormal spoilage? 7. What were the total costs transferred out of the mixing department? 8. How would Mandalorian Company account for normal spoilage? 9. How would Mandalorian Company account for abnormal spoilage?