Paragraph AaBbCcDdEe List Paragraph 21 1. The following information is available for the Red Co. for the month of January. All materials are added at the start of production. Spoilage in excess of 10% of completed units is abnormal and is detected by the final inspection at the end of the process. Beginning work in process (80% complete).. 8,000 units Started. 35,000 units Ending work in process (55% complete).. 15,000 units Transferred out... 24,500 units Beginning work-in-process costs: Materials. $14,000 Conversion. 38,200 Current costs: Materials. $ 50,750 Conversion 173,130 Assume that Red Co. uses the FIFO method. Required: 1. What is the total cost of the units transferred out, the cost of ending inventory? 2. How much could Red reasonably expect to save by reducing spoilage