SPOILED UNITS: ALLOCATION OF COSTS The N. H. Jones Manufacturing Company produces china figurines. The Molding Depart- ment inspects for spoiled units when units are 65% complete. Direct materials are added at the beginning of the process, and direct labor and factory overhead are incurred evenly throughout the process. May's data for the department are as follows: Beginning units in process (100% direct materials, conversion costs). 3,390 Cost of beginning work-in-process inventory $6.271.50 Units transferred in during the period 12,150 Costs transferred in during the period $20,290.50 Units transferred out...... 11,000 Ending units in process (100% direct materials, 60% conversion costs) 3,040 Spoiled units: Normal... 800 Abnormal 700 Costs added during the period: Direct materials $10,449.00 Direct labor $3,420.63 Factory overhead (applied) $2,407.11 Additional information: Fifo costing is used to account for beginning work-in-process inventory. The company's policy is to treat the cost of spoiled units in production as a separate element of cost in the department in which the spoilage occurs. Required: a Determine the total cost of the spoiled units. b Allocate the total spoiled unit cost to normal and abnormal spoilage