Question Richport Company manufactures products that often require specification changes or modifications to meet its customers' needs. Consequently, Richport employs a job order cost system for its operations. While specification changes and modifications are commonplace, Richport still has been able to establish a normal spoilage rate of two and one-half percent (.025) of normal input. Normal spoilage is recognized during the budgeting process and classified as a component of manufacturing overhead. Thus, the predetermined overhead rate that is used to apply indirect manufacturing costs to jobs includes an allowance for net spoilage cost for normal spoilage. If spoilage on a job exceeds the normat rate, it is considered abnormal. Then the spollage has to be analyzed, and a report explaining the cause of the spoilage has to be submitted to management. Rose Duncan, one of Richport's inspection managers, has been reviewing the output of Job No. N1 192-122 that has recently been completed. A total of 122,000 units had been started, and 5,000 units were rejected at final inspection yielding 117,000 good units. Duncan noted that 900 of the first units produced were rejected due to a design defect that was considered very unusual; this defect was corrected immediately, and no further units were rejected for this reason. These units were disposed of at an additional cost of $1,200 to Richport. Duncan was unable to identify a rejection pattern for the remaining 4,100 rejected units. These units can be sold at a salvage value of $7.00 per unit. The total costs accumulated for all 122,000 units of Job No. N1192 -122 are presented below. While the job has been completed, all of these costs are still in the work-in-process control account, i. e., the cost of the completed job has not been transferred to finished goods. Required Review the results and costs for Job No. N1 192-122 of Richport Company. Prepare an analysis showing the breakdown of spoiled units between normal and abnormal spoilage by first determining the normal input required to yield 117,000good units