McKay Materials are added at the beginning of the process in McKay Company's blending department, the first stage of the production cycle. After blending, the product is transferred to the forming department. The product is inspected at the end of the blending process. The following information is available for the month of July for the blending department: Work in process, July 1 (35% complete as to conversion costs) Started in July Transferred to the next department Work in process, July 31 (40% complete as to conversion costs) Costs in beginning work in process Direct materials Direct labor Overhead Costs added in July Direct materials Direct labor Overhead Units 50,000 200,000 195,000 45,000 $125,600 $46,935 $57,365 $349,400 $178,875 $218,625 5 points McKay estimates that normal spoilage is 2% of the good units completed. Using the weighted average cost method, what is the cost of the units transferred out of the blending department? (ROUND ALL COST PER EQUIVALENT UNIT CALCULATIONS TO THE NEAREST PENNY) 000000 $846,500 $825,435 $834,565 $809,250 $850,750 None of the answers listed are correct 5 points McKay estimates that normal spoilage is 2% of the good units completed. Using the weighted average cost method, what amount will be identified as abnormal spoilage? (ROUND ALL COST PER EQUIVALENT UNIT CALCULATIONS TO THE NEAREST PENNY) $24,900 $25,315 $16,185 None of the answers listed are correct $11,014 $17,226